


f 



i § f 

f s 









rv\ 
















=s s. ^ SLS S.S a , 





Class, o b-£L(._ 

Book_.S_l/ 

(\)p)Tii}hfN" 

COl»»-KIGHT DEPOSrr. 



How to Keep Farm Accounts 



A practical book for 
the practical farmer 



By 

H. L. STEINER 



<< TV 7 ELL, my Friend, thou art now just entering the last month of another year. If 
^^ thou art a Man of Business, and of prudent Care, belike thou wilt now settle thy 
Accounts, to satisfy thyself whether thou hast gained or lost in the Year past, and how 
much of either, the better to regulate thy future Industry or thy common Expenses.** 



POOR RICHARD S ALMANACK 



Toledo, Ohio 

STEINER & CO. 

Publishers 

1905 



LiBH'^HY Jf 


VJriGKESS 


Iwo Copies 


rteCBivca 


JUL 17 


1905 


COPY a. 






Copyright 1905 
By H. L. STEINER 



This book is dedicated to 
the every-day farmer— the 
"master-wheel" of prosperity 



PREFACE 




GREAT deal has been said about the need of a simple system 
r\ of accounts for the Farmstead— something possible on the 

average farm every day of the year— one relieved of useless 
detail, and still show its earnings and expenses— it's ow^ner's 
assets and liabilities. Taking the conditions which govern 
actual work on the farm into consideration, nothing specific 
has yet been published for the practical farmer, and it is 
for him this book has been written. It is elementary because many have 
had no opportunity to study bookkeeping, therefore the man who knows 
nothing about it has been kept in sight from cover to cover. 

The illustration given is introduced to show the application of the 
fundamental principles of accounting to the every-day routine of general 
farming. No special sets for stock, dairy or fruit farms is thought necessary 
because the principles of accounts are unchangeable and only vary in their 
application. All the farmer, dairyman, fruit-grower or stockman really 
needs is to fully understand the principles when no trouble will be 
experienced in arranging a system of accounts to suit his wants, which will 
vary to a certain extent on every farm and with each individual. 

Bookkeeping is simply a matter of record and to do it correctly only 
requires that the principles of debit and credit be understood. It is 
necessary on many farms and useful on all. The question ought not to be, 
shall I keep some simple set of books, but what form is the most practical? 
If this book will help you, its object will have been fulfilled. 



INDEX 



Account — Definition of 21 

Accounts — Arrangement of 30 

The Household 5 

The Poultry 6 

Personal > 24 

Real 22 

Representative 23 

Usefulness of i 

Accounts with Persons From Whom We Buy Goods 204 

Rules for Debit and Credit 205 to 209 

At the End of the Year 210 

Accounts with Persons to Whom We Sell Produce 197 

Rules for Debit and Credit 198 to 202 

At the End of the Year 203 

Illustration of Plates 86 and 87 

Advertising — 73 

Annual Statement — (Illustrated) 224 

April Cash Account — Example of Plates 8 and 9 

Arrangement of Accounts 30 

August Cash Account — Example of Plates 24 and 25 

Balancing the Cash 51 .52, 66 

Banking 95, 215 

Reasons for 95 

Uses of 95 

Bank Account 211 

Rules for Debit and Credit 211 to 213 

At the End of the Year 214 

Illustration of Plates 88 and 89 

Bank Checks — How to Write 230. 231 

Numbering of Same and Why 96 

When Cancelled 96 

Bank Note — Form of 245 

Bills Payable 97- loi 

Bills Payable Account 136 

Rules for Debit and Credit I37 to 139 

At the End of the Year 140 

Illustration of Plates 64 and 65 

Bills Receivable ^^ 

9 



Bills Receivable Account 143 

Rules for Debit and Credit 144 to 149 

At the End of the Year 150 

Illuslration of Plates 66 and 6"] 

Bookkeeping — Definition of 13 

Books of Original Entry 17 

Books of Record 3 

Bran 99 

Building and Improvements 74 

Building and Improvement Account 129 

Rules for Debit and Credit 130 to 134 

At the End of the Year , 135 

Business Paper — Filing of 8 

Remarks on 226 to 237 

Capital Stock Account — Its Equivalent on the Farm 117 

Cash Book, The 20, 30 

At the End of the Year 105^ 

Definition of 42 

How to Balance 51, 66 

Posting of 53 to 55 

Rules for 42 

Ruling of 43 

Cash — On hand the first of the month 58 

On hand the end of the month 51 

When credited 42 

When debited 42 

When over 52 

When short 52 

Checks — As receipts 230 

How to indorse 235 

H|dw to write 230, 231 

Nnmbering of same and why 96 

Stopping payment of 236 

When discrepancies exist 232 

When you receive one not endorsed 226. 227 

Classification of Accounts 30 

Closing the Ledger at the End of the Year 104 

Clover Seed 100 

Commercial Paper — Forms of 228 to 245 

Cost of Production 4 

Corn — Rule to find Contents of Cribs 247 

Rule for Measuring when on Cob 246 

Shrinkage 248 

Credit — Laws of 25 

Day Book, The 19 

Debit — Laws of 25 

December Cash Account — Example of Plates 40 and 41 

Depreciation — Of Buildings 129 

Of Implements 36 

Destroying Notes 141 

Discount Account 191 

Discounting Notes that have Endorsers 228 

Discrepancies in Notes, Checks or Drafts 232 

Double Entry Bookkeeping 15 

10 



Drafts — Time or Siglit 142 

When Buying 229 

When discrepancies exist 232 

When you receive one not endorsed 226, 227 

Due Bill — Form of 242 

End of the Year 104, 105, 220 

Errors in Trial Balance 57 

Essentials of Farm Accounts 2 

Essential Books of Record 16 

Extra Help Employed on the Farm 50, 69 

Expense Account 161 

Rules for Debit and Credit 162 to 164 

At the End of the Year 165 

Illustration of Plates 70 and 71 

Farm Accounts — Essentials of 2 

Farmstead, The, Account 117 

Rules for Debit and Credit 118 to 120 

At the End of tbe Year 117 

Illustration of Plates 62 and 63 

Farm Help Account, The 117 

Rules for Debit and Credit 178 to 180 

At the End of the Year 181 

Illustration of Plates 78 and 99 

Farm Ledger, The 26 

Index of 29 

Ruling of 28 

Size of 2^ 32 

Farmer's Mutual Insurance 196 

February Cash Account — Example of Plates 48 and 49 

Feed Account, The 166 

Rules for Debit and Credit 167 to 169 

At the End of the Year 170 

Illustration of Plates 72 and 73 

Fertilizers 80 

Filing o^ Business Papers 8 

First Entry to Make When Books are Opened 44 

First of the Year it 

Freight 84 

Lost in Transit 67 

Gestation Table 262 

Grain — ^Rule for finding contents of bins 249 

Shrinkage of 250 

Hay — Exact measurement of 251 

Rule for finding tons in windrow 252 

Rule to find contents of mow 253 

Rule for finding contents of stacks 254, 256, 257 

Rule for finding tons in load 255 

Rule for finding amout of hay or other products sold by the 

ton 258 

Hogs 70 

When taken for personal use 91 

How to — Arrange or Classify Accounts in the Farm Ledger. .. 30 to 32 

Balance the Cash Account 51, 52 

Close the Ledger at the End of Year 220 to 225 

11 



How to — Enter an order received for Farm Products 48, 49 

Enter an order you send for seed 59 

Find amount of Hay in Load 255 

Find amount of Hay in Windrow 252 

Find amount of Hay in Mow 253 

Find amount of Hay in Stacks 254, 256, 257 

Find percentage of Loss or Gain 225 

Find value of Products sold by the ton 258 

Find interest at any rate for any time 261 

Indorse a check 235 

Make claim to R. R. Co., for shipment lost in transit 67 

Make a check 230, 231 

Open or Beg-in a Farm Ledger 37 to 46 

Open or Begin a Cash Account 42 47 

Open an Account with Bank 95, 214 

Oipen and Close the Bills Payable Account 136 to 140 

Open and Close the Bills Receivable Account 143 to 150 

Open and Close the Building and Improvement Account 

129 to 135 

Open and Close the Expense Account 161 to 165 

Open and Close the Farmstead or Capital Account 117 to 120 

Open and Close the Farm Htelp Account 177 to 181 

Open and Close the Feed Account 166 to 170 

Open and Close the Implement Account 171 to 176 

Open and Close the Interest Account 186 to 190 

Open and Close the Labor Account 182 to 185 

Open and Close the Production Account 155 to 160 

Open and Close the Proprietor's Account 106 to 116 

Open and Close the Taxes and Insurance Account 193 to 195 

Open and Close an Account with Property other than the 

Farmstead 121 to 128 

Open and Close Accounts with Persons to whom you sell 

Produce 197 to 203 

Open and Close Accounts with Persons from whom you 

buy goods 204 to 210 

Locate errors in the Trial Balance 57 

Measure Corn in Crib 247 

Measure Grain in Bins 249 

Measure Wood 259 

Post the Cash Book 53 to 55 

Stop payment of a check 236 

Take an inventory 7, 34 to36 

Take a Trial Balance 56 

Horse Shoeing 68 

Household Accounts 5 

Husking and Shredding 9° 

Implements — Depreciation of 3^ 

Repairs on 68 

When bought 63, 69 

Implement Account 17^ 

Rules of Debit and Credit 172 to 175 

At the End of the Year 176 

Illustration of Plates 74 and 75 

Index 29 

12 



Insurance 196 

Interest Tables 260, 261 

Interest Account, The 186 

Rules for Debit and Credit 187 to 189 

At the End of the Year 190 

Illustration of Plates 82 and 83 

Inventory — Denfinition of 34 

Examples of 35, 222 

Importance of 7 

Valuation of 36 

January Cash Account — Example of Plates 44 and 45 

Joint Note — Form of 244 

Journal, The 19 

Ju'ly Cash Account — Example of Plates 20 and 21 

June Cash Account — Example of Plates 16 and 17 

Keeping Separate Accounts with each product 4 

With each field 4 

Labor 62, 69 

Labor Account 182 

Rules for Debit and Credit 183, 184 

At the End of the Year 185 

Illustration of Plates 80 and 81 

Lambs 89 

Land . loi 

Laws of Debit and Credit 25 

Ledger, The . 18 

Index for 29 

Ruling of 28 

Size of 27, 32 

To close at the End of Year 104 

Liabilities 221, 224 

Statement of Z7^ 39 

Linseed Meal 78 

Live Stock — Records 31 

On hand at beginning of the year 34 

Bought during the year 157 

Sold during the year 155 

Record of Mating and Dates of Birth 31 

Locating Errors in a Trial Balance. . . , 57 

Loss and Gain Account 216 

Rules for Debit and Credit 217, 218 

Illustration of Plates 90 and 91 

Lost Shipments — How to Collect 6"] 

Lumber 103 

March Cash Account. Example of Plates 52 and 53 

Mating and Date of Birth of Live Stock 31 

May Cash Account, Example of Plates 12 and 13 

Measures and Weights — Tables of 263 

Measurement of Corn 246 to 248 

Of Grain 249, 250 

Of Hay 251 to 257 

Of Wood 259 

Men — Hired by the Year 62. 104, 105 

Middlings 60, 166. 168 

13 



Money Taken for Personal Use 6 76 83 

Money Orders — Express 49 

Post-Office 49 

Mortgages 97, loi 

Nails 78 

Net Gain or Loss — To Find 224 

Net Worth 40, 223, 224 

Notes — Forms of 233, 238 to 245 

Having Endorsers 228 

How Debited and Credited 154 

Paid, When Secured by Mortgage 141 

Waiving Protest 228 

When Given 136 

When Paid 136, 234 

When Partial Payments Have Been Made 151 

When Renewed 152 

When Discounted 153, 192 

When Discrepancies Exist 232 

When Endorsed Over to You 237 

November Cash Account, Example of Plates 36 and 37 

Oats '7C 167, 168 

October Cash Account, Example of Plates 32 and 33 

Opening Entries When Books Are Begun 44 to 4? 

Orders for Farm Products, How to Enter 48, 49 

Original Entry, The Books of 17 

Partnership . . 107, 108 

Percentage of Loss or Gain, To Find 225 

Personal Accounts 24 

Posting 53, 54 

Order of 55 

Potatoes 87 

Taken for Personal Use 88 

Poultry Accounts 6 

Present Worth 116 

Principles and Definitions of Accounts 12 to 25 

Private Accounts 108 

Production Account 155 

Rules for Debit and Credit 156 to 159 

At the End of the Year 160 

Illustration of Plates 68 and 69 

Products of the Farm — ^When Sold 155 

When Taken for Personal Use 88 

When Sold on Time 197 

When given to help on account 179 

Promissory Notes — Forms of 243 

Proprietor's Account 104, 106 to 108 

Rules for Debit and Credit 109 to 115 

At the end of the Year 116 

Illustration of Plates 60 and 61 

Railroads — Claims Against 67 

Real Accounts 22 

Real Estate Accounts 121 

Rules for Debit and Credit 122 to 127 

At the end of the Year 128 

Receipts — Forms of 239, 241 

14 



Receipt — To apply on account 239 

In full of account 240 

For payment on note 241 

Record of Live Stock 31 

Red Ink in the Ledger 10 

Rent 126 

Repairs of Implements 68 

Representative Accounts 23 

Resources 221, 224 

Resources — Statement of Z7- 3^ 

Rules of Debit and Credit 47 

Rules Useful When Taking- the Farm Inventory 246 to 259 

Ruling of Cash Book 43 

Of Ledger 28 

Sales of Farm Products 48 

Salt 60 

Scales , 74 

Seed — Entry of When Buying 59, 81 . 85 

September Cash Account — Example of Plates 26 and 2'j 

Shipments Lost in Transit 67 

Shoeing 68 

Shredding Fodder 90 

Single Entry Bookkeeping 14 

Sight Drafts 142 

Size of Ledger 25, 32 

Statement of Resources and Liabilities 37 

Stallion Services 64 

Stationery 61 

Stock Register 31 

Sundry Labor 69 

Tables of Weights and Measures 263 

Taxes and Insurance Account 193 

Rules for Debit and Credit 194 

At the End of the Year 195 

Illustration of Plates 84 and 85 

Threshing yy 

Tile 102 

Time Drafts 142 

Timothy Seed 85 

To find what you have made or lost 223 to 225 

Transactions that occur when you are not at home 9 

Transferring an Account to a new page or a new Ledger 140 

Trial Balance 54. 56, 65 

To locate errors in 57 

Usefulness of Accounts on the Farm i 

Waiving Protest on Notes you discount that have endorsers 228 

"Wear and Tear" of Implements 36 

Weights and Measures 263 

What You Must Know Before You Begin or Open Your Books 40 

Wheat 79 

Shrinkage of 250 

When Ought the Farmer Open his Ledger ii 

Wood — 'Measurement of 259 

Wool— When Sold 68, 158 

Yearly Statement 223, 224 

15 



Part One 



'^ I would not impose on a busy farmer the keeping 
of an elaborate set of hooks, but some simple form of 
accounts vnll be a great aid in successful farming ." 

James Wilson, Secretary of Agriculture. 



FOREWORD 



1. The farmer who works all day under a blazing sun, nat- 
urally looks upon the keeping of accounts from' a different view- 
point than other men in business for themselves. For besides the 
long hours, rush-of-work and scarcity of help during the busy days 
from seedtime till harvest, he has the natural aversion to writing 
and detail common to all who do active physical labor. There- 
fore, it's not a matter of surprise when we think of the conditions 
under which the American farmer must labor, that, although he 
has over twenty billions of dollars invested in his business, he 
usually leaves the accounting of it for later consideration, with 
the result that a record is seldom, if ever attempted of his farm- 
stead's earnings and expenses. 

Admitting the value of bookkeeping on the farm!, the first 
question that comes to the mind of the practical farmer is: "What 
is the best way to keep my accounts." 

2. THE ESSENTIALS OF FARM ACCOUNTS.— In farm 
accounting there are two essentials which ought always be kept 
in mind. These are accuracy and simplicity. That all bookkeej)- 
ing must be accurate goes without saying, and that farm accounts 
should be simple and free from detail is apparent to any one at all 
familiar with actual every-day farm conditions. 

3. THE BOOKS OF EECORD.— The uses of modern com- 
merce dem^and that the books of record suit the business in which 
they are used. In the great mercantile and industrial organiza- 
tions, it is often economy of time to have niany books of record 
but not so on the farm. Here, the less detail and fewer books of 
record the better, hence, the method described and illustrated in 
the following pages makes use of but one book. 



HOJV TO KEEP FARM ACCOUNTS. 



It's a common saying that no two men keep their books alike. 
But the difference if any, comes from the individual, his business 
and the details necessary to be shown. The matter that goes into 
the Farm Ledger will depend on the farmer himself. It will be 
much or little as he may decide. However, let him beware lest 
his books begun in the flood tide of enthusiasm, when work is slack 
and evenings long, be not too full of unimportant detail. They 
are then almost sure to be neglected when the busy days come 
later on. It is much better to begin a simple account and keep it 
accurately than to attempt too much. Think of your busiest days, 
not those in which you have the least to do. 

4. THE COST OP PRODUCTION.— Notwithstanding the 
farmstead with its full complement of live-stock, implements and 
buildings can be likened to a "plant" of the manufacturer, and al- 
though the farm is a factory to all intents and purposes, it is 
questionable whether the practice of cost or departmental ac- 
counting is practical on the average farm. On this point there 
may be a difference of opinion, but on the average farm one who 
would attempt to keep an accurate account with either fields, 
crops or kinds of stock would have his hands so full during the 
busy season, that, nine times out of ten, the accounts would be 
neglected and thought too troublesome to continue. For this rea- 
son, most farmers should treat their accounts with the farm as a 
whole — rather than to open an account with each field, with their 
hogs, their sheep, their cattle, etc. It is true that accurate cost- 
accounting is a necessity in the factory. The manufacturer must 
know what it costs to make and put his products on the market, 
but is it so all-important to the farmer? In nearly every rotation 
there are certain crops necessary to keep up the farm fertility that 
can't be accurately set down in figures. The results from the 
farmstead as a whole, eventually, is of the most importance. And 
the practical farmer, if he cares to know, can take his pencil, and 
come as near as is necessary to figuring the cost of growing an acre 
of corn, or what his cattle or sheep net him. Therefore, don't draw 
the lines so fine in actual practice that your resolve to keep ac- 
counts will have died "a bornin;" but remiember, that the cost of 
production of farm products depends so much on the elements 

22 



HOIV TO KEEP FARM ACCOUNTS. 



over which you have no control, and that the details are so many 
if you would have them accurate, that it is altogether best not to 
attempt it. It is true, you have seen every now and then in the 
agricultural press, articles regarding the cost of producing a 
pound of pork, beef or mutton, and what it costs to grow the dif- 
ferent grains and grasses. Now, however useful the exact cost 
may be, the farmer or stockman who would attempt to keep such 
an account with each crop, and the different kinds of live-stock he 
would raise, will find it all but an impossible task. Manufactur- 
ers who deal only with dead things can easily keep exact cost 
accounts, but living and growing things possess an individuality 
that varies with the season, with the feeder, and depend on con- 
ditions w^hich do not admit of hard and fast rules. Recently in 
The Breeder's Gazette, the author of a standard work on "Feed- 
ing'' had this to say concerning it: "Feeding has been frequently 
referred to as a science but it is far from being an exact science. 
It is still in the empirical state of experimentaion. No other voca- 
tion of man more thoroughly illustrates the aphorism that a little 
learning is a dangerous thing. As the result of a single experi- 
ment we find formulas laid down with all the dictum of authority, 
and the great army of feeders commanded to "about face," and the 
very next experiment under similar conditions gives opposite re- 
sults. Do you know that after fifteen years, during w^hich the 
Government has expended |225,000 as a minimum, it is impossible 
to tell the cost in corn of a pound of pork? "The more I learn 
the mpre I know I don't know." 

For practical purposes, a "Production" account showing the 
gross sales less the items which go to make up the general expense 
of the farmstead as shown by the Loss and Gain account in the 
illustration herein (Plates 90 and 91) will be all that is needed. 
Much more satisfaction and real benefit will be found in a simple 
set of accounts accurately kept, than to attemp one b\i.rdensome 
with detail, and then at the end of the year find it to be of no value 
whatever. Far better to keep an account with the farmstead as 
a whole than to begin the detail of departmental accounting. The 
one is perfectly reasonable, and requires but little time. The other 
impractical and impossible to all but the very, very few on the 
average farm. 23 



HOW TO KEEP FARM ACCOUNTS. 



5. THE HOUSEHOLD A(XOUNTS.— Now, about the 
Household Accounts. Are there any reasons why they should be 
included in the farm ledger? Have you ever known a banker, 
merchant or manufacturer to include them in the books of his 
business? Couldn't he, with as much reason for so doing, include 
them in his books as you in yours? Some argue, that on the farm 
the household expenses are so closely related to the farmstead's 
earnings that they must be included. Very true as far as it goes, 
but they have no place in the farm ledger. Elaborate accounts 
have been shown in which the "Garden Account" was charged 
for all labor, seed and other expenses and credited with the dif- 
ferent vegetables used from time to time at the market price. Do 
not do this nor allow any more detail to creep into your books of 
record than will be of use to you. If you think about this a little 
you will not want to. As for "Garden" or household accounts, re- 
member that when you hire a man by the year for a certain sum, 
you allow him in addition to the amount agreed on — pasture for 
cow and a garden or truck patch. You figure his labor worth the 
wages you pay him plus the pasture and use of the small plot of 
ground for his garden. And this is the best plan for yourself too. 
The live-stock, implements and buildings are a part of the farm- 
stead's equipment. These, together with the farm, enable you to 
produce a profit from your labor and management. And for this 
the farm owes you something each year. You may never have 
figured on this but if you are going to begin an account with your 
farm, you should open a "Personal" account and charge yourself 
with all money you take from its earnings for personal or house- 
hold use. At the end of the year you should charge the "Labor" 
account for whatever amount you think you've earned, making your 
wages large enough to fully meet all expenses for clothing, groc- 
eries, church, education, relaxation and all other necessaries to 
which your family is entitled. Whatever you decide that you and 
your family can get along with — charge to your "Personal" ac- 
count and keep the detail of household accounts out of the farm 
ledger. If you do this, the same as any other business man would 
do, your bookkeeping will be much more simple and satisfactory 
in every way. 

24 



HOW TO KEEP FARM ACCOUNTS. 



6. THE POULTRY ACCOUNT.— On most farms, unless 
Poultry is made a specialty, the proceeds is considered the wife's 
to do with as she sees fit. Sometimes she trades the eggs out at 
the "store" for different little things needed round about the house, 
and sometimes she takes the cash, but, generally, whatever is de- 
rived from this source is considered hers to do with as she pleases. 
For that reason Poultry is not included in the inventory of the 
illustration given in the following pages. But if the owner of a 
farm decides to have an account with "Poultry" he should include 
it in his inventory, in which case he would have to credit the 
"Production" account with all proceeds from the poultry — that is 
treat it as he would his hogs, sheep or cattle. 

7. THE INVENTORY.— What has been said about it being 
necessary to include the Poultry in the inventory, if it is decided 
to have an account with it represented in the ledger, brings to 
mind the importance of the inventory. If you have read Prof. 
Henry's "Feeds and Feeding" you know how much importance he 
places on the old maxim that "The eye of the master fattens his 
cattle." Now, in accounting never forget the importance of the 
inventory. An inventory is the first thing to take before any 
books can be opened, and it is the first thing to take before they 
can be closed. It is one of the most important steps in accounting, 
but even as important as it is, so many business men neglect it, 
leaving it to subordinates who do not fully realize how vital it is 
to the success of the business, that fully 95 per cent, of the failures 
in business can be traced directly to this carelessness or ignorance. 
By all means take your inventory yourself and carefully. Get 
ready for it so that when the day comes you can take it without 
trouble or guess work. Remember that everything should be in- 
cluded in the Inventory that is used in the maintainance of your 
farmstead or to increase its products. And further, that the value 
of each implement, all live-stock, feed and products on hand at 
the time it is taken should be honestly set down. Make the values 
just what you could get in the open market for all except the im- 
plements, and on these deduct a certain percentage each year for 
"wear and tear" from the prices paid. Some manufacturers de- 
duct ten per cent., but generally this is too much for farm machin- 

25 



HOW TO KEEP FARM ACCOUNTS. 



ery that has bad good care. It often happens that the old 3'OU 
have will do as good or better work than the newer. You see it 
depends altogether on the "eye of the master," for 

' '//<? w/io by the Plough would thrive 
Must either hold himself or drive. ^^ 

8. THE FILING OF BUSINESS PAPERS.— And when you 
are taking your inventory, some of the prices paid for the different 
implements, for the harness or for some one of the many things 
about the farm may have been forgotten. How are you to know 
and get at the correct cost in such cases? Let "a place for every- 
thing and everything in place" be your rule when handling busi- 
ness paper and correspondence. If this is practiced you would 
only have to turn to your letter file and find the original cost of 
any implement or the price paid for all feed instantly. A transfer 
case with index can be bought at any stationers, at from 20 to 40 
cents. In it can be filed for instant reference, all letters, receipts, 
expense bills (freight receipts) Bills of Lading, cancelled checks, 
cancelled notes and all other paper worth keeping for future con- 
tingencies. Begin to file all papers that pertain to the business of 
your farmstead. Put everything in black and white. Don't de 
pend on memory or verbal contracts "for verbal contracts feed the 
courts" and one of you may die. Keep your ledger right up to 
date, and if the inevitable comes, as it must come some day, your 
family will not be "between the devil and deep blue sea" but can 
take hold of your temporal accounts understandingly and conduct 
the farm and settle your business affairs without litigation or 
expense. 

9. "WHAT ABOUT TRANSACTIONS THAT OCCUR 
WHEN I'M NOT AT HOME?"— As explained in paragraph 6 the 
book upon which a transaction is first recorded is the one to be 
produced in evidence in cases of litigation. For this reason it is 
good business practice to enter all transactions in the one book 
you keep as a Ledger. As the transactions are not many any one 
month, by leaving four pages for each month's Cash Account, or 
forty-eight pages for the year, enough space will be left for all 
transactions which are necessary to enter during the absence of 
the owner, or whoever may take care of the books. If pages nine 

26 



HOW TO KEEP FARM ACCOUNTS. 



and ten are used for the April cash, eleven and twelve will be set 
aside for memoranda which ought to include all events worth 
putting on record. By this method if you were not at home and 
John Jones got a load of hay, those in charge in your absence 
would turn to the memoranda page for whatever month it hap- 
pened to be and write, if in April, on page eleven: "John Jones, 
Hay 2640 lbs." On your return, you would naturally turn to the 
books and finding this entry, write it on the Cash Account proper 
for that day and month as it should be, according to whether it 
was a cash or time transaction. 

10. RED INK IN THE LEDGER.— Books, of course, can 
be kept as accurately without the use of red ink rulings and en- 
tries to balance accounts as they can with them, and many book- 
keepers claim its use should be relegated to that chapter in the 
ancient history of accounting when all cash transactions were 
journalized. But most bookkeepers continue to use it and the il- 
lustration given herein makes use of it. A word or two as to 
what these red ink entries mean will not be out of place. 

First turn to the Cash Account for April (plate 9). Footing 
up the entries in black, we find the debit side amounts to f425.00 
more than the credit side, that is, we have $425.00 on hand. Being 
the end of the month and wishing to close the account to make it 
balance we write on the credit side, in red ink, "Balance |425.00 
(See item eg.)" When we write this, we really agree to enter, as 
soon as the account is ruled and closed, on the debit or opposite 
side, the amount we have on hand in black ink. Compare item eg 
on plate 9 with item da on plate 12 and jon will see just what is 
meant. You will also note that this occurs every time we balance 
the Cash Account, whether daily, weekly or monthly. 

If you will now turn to the Ledger accounts you will see that 
the red ink entries made there to balance, carry forward or close 
an account at the end of the year never affect its balance because 
you agree when you balance, carry forward or close an ac- 
count, that you will bring down or carry forward all red ink 
entries to the opposite side of the Ledger in black ink. Hence, 
the balance of the Ledger is not changed, the red ink simply serv- 
ing to show that such an account has been balanced, carried for- 

27 



HO IV TO KEEP FARM ACCOUNTS. 



ward or closed as we have agreed to do as indicated by the entry 
in red. 

If you refer to Plate 60 you will see we agree to credit Fox 
with his "Present Worth" at the time the books are closed. (See 
entry in black ink of |12,703.G0 on Plate Gl.) 

Therefore, all red ink entries are either brought down or car- 
ried forward to the opposite of the Ledger in black ink, 

11. WHEN SHALL THE FARMER BEGIN OR OPEN 
HIS LEDGER? — It is customary among merchants and manufac- 
turers to close their books at least once a year, and it is understood 
by them that the first of the year, as far as the records of the busi- 
ness are concerned, is at the time the time the books are closed. 
In commercial pursuits, January 1st is usually selected, but on the 
farm, this must be consideredwhether it isn't best to select a time 
wlien the live-stock and other products are at their minimum? 
For instance, among farmers generally in the northern half of the 
United States the first of March or April finds most of them with 
less stock and produce on hand than at any other time of the 
year, and the active labor of putting in the oats, barley and other 
spring crops barely begun. Any date w^U do, and the farmer must 
decide for himself what time of the year suits his location, rota- 
tion and farm management best. 



Part Two 



PRINCIPLES AND DEFINITIONS 



12. PRINCIPLES AND DEFINITIONS. At the begin- 
ing of every business, except farming, some system of accounting 
from which its owner can form an estimiate of its development at 
any time, is thought absolutely necessary. In farming it is the. 
last. And, although the keeping of accounts must always be 
incidental to the business itself, because it results from it, yet 
it is such an important essential in securing the greatest profit 
from the farm that every farmer should keep an account with 
his farmstead, if ambitious to obtain the most profitable re- 
turns from his management. For after all, profit is the incentive 
to all business activity. This is just as true on the farm as it is 
in any branch of commerce or manufacturing. It's the profit we 
think of that spurs us on to grow better grain, or fruit, or to 
raise finer stock than our neighbors. And then when we've sold 
the stock we've raised and the grain or fruit we've grown and 
have pocketed the proceeds, we've completed a business exchange 
or transaction that ought to be put on record, the recording of 
Avhich is nothing more or less than bookkeeping, hence: 

13. BOOKKEEPING is the art of recording business trans- 
actions distinctly and systematically so as to show the money 
received, disposed of and on hand, the credits given, and the 
assets, liabilities, and general status of the business, person or 
firm. There are two methods of keeping books known as Single 
and Double- entry. 

14. IN SINGLE ENTRY there is but one debit or one 
credit to a transaction, and only personal accounts carried to 
the Ledger. It is therefore imperfect and incomplete and never 
used in modern business, because accounting that isn't accurate 
is worse than none at all. Single-enti'y affords hardly half-a-loaf 
at best, but 

SI 



HOW TO KEEP FARM ACCOUNTS. 



15. DOUBLE ENTRY BOOKKEEPING furnishes a com- 
plete business record in which every transaction is made to ap- 
pear on the Ledger as both debtor and creditor by observance of 
the governing principles, that, in every instance the thing ob- 
tained is debtor to the thing given, and the thing given is creditor 
of the thing obtained, by means of which a correct Ledger bal- 
ance is always at command. In simple English it means that, 
for every debit there must be a corresponding credit, and vice- 
versa. That's the whole thing in a nutshell, and it is by using 
this principle for a foundation that the entire structure of ac- 
counts is built. 

16. ESSENTIAL BOOKS OF RECORD.— In double-entry, 
the Journal, Cash Book and Ledger are the principal books, al- 
though other books known as Auxiliary books are added for con- 
venience. Nowadays the Cash Book and Ledger are the principal 
books and it is perhaps advisable to have a separate book for 
each on farms extensive enough to require the services of a book- 
keeper, but for all farmers who must keep their own books, the 
system shown in the pages which follow is the most simple and 
convenient. 

17. Books of Original Entry are those upon which the trans- 
action is first recorded. In case of litigation the book of original 
entry, whatever that book may be, is the one required to be pro- 
duced in evidence. 

18. THE LEDGER is the book of accounts, and contains a 
final summing up of all the accounts. 

19. THE JOURNAL OR DAY BOOK.— Formerly this book 
was used to enter all transactions as they occurred from day to 
day. Nowadays the best bookkeeping is that which tells every 
detail with the least minutia, and the tendency of the times is 
td reduce the number of books and entries as much as possible, 
hence, the Journal or Day Book is seldom used, the Cash Book 
answering every purpose. 

20. THE CASH BOOK is the book used to detail the cash 
transactions and should always be a book of original entry. On 
the farm it should answer the purpose, and take the place of the 

82 



HOW TO KEEP FARM ACCOUNTS. 



Day Book or Jourual. Then by combining it with the Ledger, as 
explained later on, the farmer will have to keep but one book of 
record which v/ill appeal to all practical men. One volume a 
year — the original book of entry and Ledger, one and the same. 
In cases of dispute or litigation, if called upon to act as Guardian 
or Administrator, if ever under any circumstances called upon 
to produce the book in court, every transaction is there convenient 
and complete. 

21. ACCOUNT. — An account is a recorded statement of 
debits and credits, of receipts and expenditures, or of business 
transactions, and are of three kinds. Real, Representative and 
Personal. ' 

22. REAL ACCOUNTS are those which show either a re- 
source or a liability in continuous record, such as cash, notes and 
personal accounts. 

23. REPRESENTATIVE ACCOUNTS are those which 
show the earning activities of a business, such as interest, dis- 
count, expense and property. 

24. PERSONAL ACCOUNTS are those opened with per- 
sons who from time to time become indebted to us or we to them. 

25. LAWS OF DEBIT AND CREDIT.— As explained in 
defining double entry Bookkeeping, every transaction is made to 
appear in the Ledger as both Debtor and Creditor, hence every 
account is affected in two ways — by debits and credits. From 
this you will understand every account has two sides, the Debit 
and the Credit. The principles which govern them are unchange- 
able and are as follows: 

DEBIT SIDE ACCOUNT CREDIT SIDE 



On this side we enter what comes into 
the business or what costs value. 



On this side we enter what goes out 
of the business or what produces value. 



Therefore, you should memorize the following; 



Always debit what we receive and 
who or what costs us value. 



Always credit what we give and who 
or what produces value. 



You must thoroughly understand that every transaction that 
can possibly occur is governed in a bookkeeping sense by one or 
the other of the two principles given above. 

33 



Part Three 



''Let us forge out a .system that will 
meet our require/ment^ a.s- 'producers 
and mit our conditiom^.'"— Wilson. 



THE FARM LEDGER 



26. A modern system of accounting is one that automatically 
furnishes statistics of a business in such form as to be readily re- 
ferred to by the owner, and furnish him a safe guide for its man- 
agement along prosperous lines. On a farm the books should be 
so kept that all questions regarding either the finances of the 
farmstead or its owner can be answered without looking up data 
in ancient files or other books of record than the Ledger. 
As for the Ledger, there are nearly as many kinds of rulings now- 
adays as there are businesses. This results from a desire to har- 
monize the books with the business, and when attained, insures 
accuracy and a great saving of labor. The farmer should adapt 
his bookkeeping to suit his conditions, and the best system for him 
is one that differs from the usual method by dispensing with sep- 
arate Day Book and Cash Book, using one book only — the Ledger 
— which, if rightly kept, will answer every purpose. 

27. SIZE OF LEDGER.— All that is required is one large 
enough to admit of opening all the accounts necessary to properly 
care for the rotation followed on the farmstead. It is best to use 
one book each year. It is much handier when wanting to refer to 
the records of any former year or when comparing one year with 
another. 

28. RULING.— It should have the regular single entry rul- 
ing, of which the following is an example: 



EXPLANATION OF COLUMN 



PAGE 

OF 

CASH 

BOOK 

OR 

LEDGER 



Blank books ruled like the above can be bought at most stores 
in every village, the cost running from seventy-five cents up, ac- 
cording to size, quality of paper and binding. 



HOIV TO KEEP FARM ACCOUNTS. 



29. INDEX. — These books are made with and without in- 
dexes; but when used as a book of record on the farm they should 
have the index. Then it can't be lost or mislaid and is always at 
hand, ready for use. 

30. THE ARRANGEMENT OF ACCOUNTS.— It is always 
advisable in classifying the accounts for the average farm, that 
the first six pages be left for the annual inventory. Then an al- 
lowance of forty-eight pages for the Cash account for the twelve 
months. This allowance of forty-eight pages for the Cash account 
during the year insures enough space to write any memoranda 
during the mouth, which may be worth noting in permanent form, 
that is, if pages nine and ten are used for the June Cash, pages 
eleven and twelve would be left blank for memoranda and the July 
Cash entered on pages thirteen and fourteen, and so on. Then a 
few pages should be set apart to record the mating and date of 
birth of all live-stock and this should be indexed the same as any 
account in the Ledger so that it may be quickly found. 

31. These few pages should be all that is necessary on most 
farms, but if the breeding and sale of pure-bred stock of any kind 
is made a specialty, it is altogether better to use a record made on 
purpose for breeders. The balance of the pages in the Ledger 
should be divided to suit the accounts one has or may wis^^ to 
keep, except, that not less than ten pages should be left t.;^ the 
end of the book for a recapitulation or annual statement tct che 
farmstead's earnings and expenses for the year. 

33. LTsing the above for a basis the pages necessary, would 
on most farms be about 100 but the size of the Ledger used must 
of course be governed by the size of the farm and the acounts one 
would wish to open. 



40 



Part Four 



" Ilhistratio7i is the basis of successful 
teaching.^'— Horace Mann. 



THE ILLUSTRATION 



33. To better illustrate how the books are first opened or 
begun, let us imagine some person, say one John Fox, wishes to 
begin a simple set of accounts Avith his farmstead. Having; de- 
cided on this, the first thing he must do is to take an inventory 
and an 

34. INVENTORY on the farm should be an itemized list of 
everything used to increase its profits or maintain it. It must in- 
clude all Live-stock, Feed, Implements, and all products on hand, 
such as Wheat, Corn, Barley, Rye, Hay, Potatoes, etc., etc., with 
the quantity and number of each figured at the market price the 
day it is taken. 

This Fox takes and as he has no time for ''fuss and feathers'* 
and doesn't w^ant to open a separate account for each product, he 
includes under the head of "Production" all his live-stock and the 
produce grown by him. (Refer to 155.) 

Under Feed, he enters only that which he has bought, such as 
Bran, Middlings, Oats, etc. Had he grown the Oats he would have 
to enter it under "Production" but whatever he buys to feed must 
be inventoried as "Feed" and at the prices paid for it. 

The inventory having been taken we give it in full as folio wg: 

35. — Inventory of Clovermead Farm, March 31, 1901. 

PRODUCTION. FEED. 

Bay Team Jack and Jim $ 160.00 75 lbs. Linseed Meal at $24.00. .$ .90 

Bay Mare Queen 75-00 J^ ton Bran at $15.00 1.87 

Black Mare Bess 60.00 ^ ton Middlings at $19.00 14.25 

Chestnut Mare June 175.00 27 bushels Oats at 32c 8.84* 

Two Cows at $35.00 70.00 

20 Stock Hogs at $5.00 100.00 $ 25.86 

15 Poland China Sows at $12. . 180.00 



IMPLEMENTS. 



I Berkshire Boar 35-00 

100 Shropshire Ewes at $4.00. .. 400.00 

I Shropshire Ram 50.00 One Wagon $ 60.00 

I Shropshire Ram 30.00 One Farmers' Handy Wagon.. 39.00 

I Shropshire Ram 20.00 One Surrey 120.00 

913 bushels Corn at 35c 319-55 One Buggy 80. co 

9 bushels Potatoes at 30c.... 2.70 One Spring Tooth Harrow 14.00 



1114 tons Clover Hay at $6.00. . 69.00 

87 bushels Seed Corn at 60c. . . . 52.20 .Amount up $ 3^3 00 

$1398-45 



JIOll' TO KEEP FARM ACCOUNTS. 



I'.roiiKlil lip $313-00 l^cs's 25% discount for "wear 

One A(liusl;il)lc Marrow 12.00 and tear"' of five years' use. . . 183.00 

One Roller lu.oo $ 549.00 

Two Plows at $15.00 30.00 

One Cultivator, "IMaiicl Jr."... 40.00 One l'>inder $ 100.00 

One Weeder 12.00 One Corn Harvester 100.00 

One Corn Planter 27. co 

One ('.rain Hrill 75-0O $ 200. OO' 

One Mower . 40.00 T.ess 5% for one year's depre- 

One Calioon Seeder 3.00 ciation 10.00 

One 'J\'(I(ler 22.00 

One Corn v^lieller . 5.00 $190.00 

One Hay Rake 20. 00 

One 1 lay & v'^lock Raek 12.00 

Two vSets Jiarness at $36.00 72.00 RECAPITULATION. 

One Set Ivigiit Harness 20.00 

Also .-Xxc-s, Forks, Log Chains, Production $1398-45 

'Iliree Horse Kvcners, Wheel- ^'^^^ 25.86 

barrow, and other miscellan- I nii)U-nH'nts 739-0O 

eons tools about the place.... 10. OO — 



$7,^2.00 Total $2163.31 

36. lN\'i<:NT()KV N'ALIIATION.— A.H wc liavo already stal- 
<m1 Vox values his live-sHxk al what il would brinii", if sold the day 
lie lakes his iuvenl<u-_v and this is also due of the produce he has 
Hi'owu; l)ul (he l''ee<l he niusl (ii;ui'e at what it cost hiui. P'roin 
liis iiiiphMiieuts he deducts 25 per ceut. for "wear and tear" of five 
years usai^c. As I he Kiuder aud (\tru Harvester were bou<j:hl m 
\\)(){) lie ouly <h'du<'ts T) per ceut. from Iheui — both practically beiu;j: 
as uood as uew. Soiue uiauufact urers deduct 10 per ceut au- 
uually foi- the depreciatiou of theii' uiachiuery but wlieu <iood care 
is takeu of fa ruj iui!|)l(Mneuts there is scarcely need for such a 
d<>ductiou. The owner u\ust of c(Uirse decide for himself what 
the de])recialiou amounts to. 

37. STATEMENT OF KESOIUCKS AXi) LIAIULITIES.— 
l'\)\ now has his inventory taken, lie knows what he has on his 
faiiti and (hat if sold today it would amount to 12,103.31. However, 
before he can be^iu his books he nnist know not only this; but the 
exact auu)unl of evei'vthinii; else he owns, what he owes and also 
what is owinji" him. The easiest way to do this, is to make a state- 
ment of his Kesourccs (what he has) aud Liabilities (what he owes. 
To ,u«'t at this, his farui known as"('lovermea(r' consistinji; of 120 
acres cost him fSO.OO an acre. He still owes on it |2.000.00 which 
is in four notes of |r)00.00 each. ])ayable annually with inten\st at 
per ceut. These notes are secured by Mortiiaui', and are held by 

46 



HOW TO KEEP FARM ACCOUNTS. 



a local bank — the First National. He has also |41*i.00 <'ash on 
hand and a note of |7().00 in his favor which is due July 15, 1001. 

38. Ttomizinf]^ tho above, he places under "Itesources" (1) 
the cash value of his farm. (2) Production (see inventory) which 
represents his live-stock and the products of his farm on hand at 
this tim'e. (3) Implements (see inventory). (4) "Feed" (see in- 
ventory) and by "Feed" he means what he has had to buy — not 
that which he has «;rown. (5) Bills Receivable (notes owinj^ him) 
and (()) the Cash he has on hand. These items are all "Hesources" 
because if necessary he could sell them for lh(? amount set aside 
each and thus realize that much cash for them — hence, a resource. 

39. Under "Liabilities," he places liills Payable (notes he 
owes). To better understand this, let us set down these items and 
amounts under their respective heads, so that it will be perfectly 
clear. 

RESOURCES. LIABILITIES. 



(i) Clovermead Farm 

(2) Production (Inventory) 

(3) Implements (Inventory) 


$ 9600 

1398 

739 


00 

45 
00 


Bills Payable 
owes) 

Net Worth 


(Notes he 


$ 2000 
10246 


00 
3r 


(4) Feed (Inventory) 


25 


86 










(5) Bill Receivable (Notes 
owing him 


70 


00 










(6) Cash (Money on hand) 


413 


00 












$12246 


31 






$12246 


31 



40. Now, in lookinj^ at the statement above you will see one 
item under "Liabilities" about which nothing' luis yet been said. 
It is Net Worth, and is simply this: — Fox's total Resources amount 
to $12,246.31. Takino- from it the total amount of his debts 
(|2,000.00) tliere remains the difference of 110,240.31, or his Net 
Worth. The forejijoing is what Fox must know before he can open 
his Ledj^cr. It is what you nnist also kn(»w before you can open 
an account with your farmstead intelli«;ently. 

41. Fox mmst next make the opening entries in his book of 
record and as he is a practical farmer, he wants his accounts to 

47 



HOW TO KEEP FARM ACCOUNTS. 



he as simple as cau be and yet be accurate. With this in view, 
he decides to have as few accounts in his Ledger as possible — to 
use but one book of record — settinj^j aside the first six pages for 
the inventory, the next forty-eight pages for the Cash account for 
the year, and the balance of the book for his accounts in the 
Ledger proper. But before any accounts or entries can be made 
in the Ledger, they must appear on the Caslt Book and the 

43. CASH BOOK in its original form wns simply the cash 
account. It was debited for the cash received and credited for 
all cash paid out — the diiference between the debit and credit 
sides showing exact amount of cash on hand. But on the farm 
the Cash Book must answer for a Day Book or Journal as well, 
and all transactions appear in it. As explained before, in double- 
entry bookkeeping all accounts have two sides — a debit and a 
credit. The left-hand side is the debit side and the right-hand is 
always the credit side. Itemember, then, that he following rules 
are absolute for the Cash Book. 



LEFT-HAND OR DEBIT SIDE. 

On this side enter all cash you re- 



RIGHT-HAND OR CREDIT SIDE. 

On this side enter all cash you pay 

out. 

43. Now the sides of the blank book that you are going to 
use as a Farm Ledger, are ruled exactly alike and you will see by 
referring to the example below that the first column is for the date, 
the second for the page of the Ledger to which the entry must be 
posted. The third is for explanation in which you should write a 
complete history of the transaction at the time it takes place. This 
should always be writen out fully so that if at any time later a 
question arise as to the validity of an account, the details given 
in this column will remove all doubt as to what it was, when it 
took place, etc. The Dollars and Cents column at the extreme 
right of each page are those in which you set down the amount of 
the transaction. The correct ruling for a Farm Ledger is shown 
below, which note: 



THIS 


THIS 


THIS THE EXPLANATION COLUMN 




DOLLARS 


CCNTS 


FOR 


SPACE 










THE 


FOR 










DATE 


LCDCCR 
PACK 











Fox is now ready to make his first entry and the 

48 



HOIV TO KBBP FARM ACCOUNTS. 



44. FIRST ENTRY is to give the owner (Fox) credit for his 
investment. This is always the first entry when the books are 
opened. We find his investment as follows: The statement of 
his Resources and Liabilities shows his net worth to be $10,246.31 
of which 1413.00 is in cash (money on hand). By deducting his 
cask on hand from his Net Worth we have |9,833.31 which repre- 
sents the net cash value of his Farm, Production, Feed, Imple- 
ments and Bills Receivable. Therefore, we credit J. Fox (or the 
owner) by entering on the debit side of the Cash Book |9,833.31j 
the net cash value of his investment and the |413.00 cash on hand 
(Refer to Plate 8, item da). Also turn to paragraph 112. 

45. THE SECOND ENTRY is to credit Bills Payable for 
12,000.00, the amount of notes Fox is owing to the First National 
Bank. (Refer to Plate 8, item db.) Also refer to paragraph 138. 

You are wondering why we Credit Fox and Bills Payable, 
when we enter the«e items on the debit side of the Cash Book. 
The reason is this: The Cash Book is the cash account. We 
charge (debit) it for all cash we receive and credit it for all we pay 
out. But the Cash Book on the farm must take the place of the 
Journal and when we open (begin) the books, we must of course 
credit Fox (the owner) for the amount of money he has invested. 
He now has |9,833.31 in land, live-stock, implements and |413.00 
in cash, all of which he is using in his business of farming. He 
must open an account in the Ledger that will represent his interest 
in his business. Hence, he must be credited for the amount in- 
vested and the cash he is using. 

46. WE NEXT DEBIT the following accounts with the 
amount of each as shown by the inventory. Clovermead Farm 
(Plate 9, item ca. and refer to 118), Production (Plate 9, item cb. 
and refer to 156), Implements (Plate 9, item cc. and refer to 172), 
Feed (Plate 9, item cd. and refer to 167), Bills Receivable (Plate 9, 
item ce. and refer to 144). These items are those that Fox has his 
money invested in. And as we have previously learned that there 
must be a debit for every credit, we debit each for the amount 
invested, because we have given Fox credit for them. If they 

49 



HOW TO KEEP FARM ACCOUNTS. 



have been entered correctly the Cash Book should now balance 
as follows: 

CREDIT SIDE. 



DEBIT SIDE. 



Clovermead Farm 
Production (Inventory) 
Implements (Inventory) 
Feed (Inventory) 
Bills Receivable 
Balance 


$ 9600 

1398 

739 

25 
70 

413 


00 

45 
00 
86 
00 
00 


J. Fox — Investment 
J. Fox — Cash 
Bills Payable 


$ 9833 31 

41300 

2000 00 

( 


$12246 


31 


$12246131 



47. Now that Fox has his books begun, somebody or some- 
thing must be debited for everything brought on the farm, and 
somebody or something credited for all that is sold or taken from 
jthe farm. By doing this he will know at any time the exact 
■amount of cash he has on hand and the true condition of every 
account he has in the Ledger. 

NOTE: — For ready reference each entry on the Debit side of all ac- 
counts in both Cash Book and Ledger is indicated by the letter "d" and 
foUoiv each other in alphabetical order, thus: The entry giving Fox credit 
for his investment is Plate 8, item da., and that of Bills Payable is Plate 8,' 
item db. The entries on the Credit side are indicated by using the letter 
"C" to designate the credit side as Clovermead Farm : Plate 0, item ca. 
.Production, Plate p, item cb., etc., etc. 



50 



Part Five 

THE CASH BOOK 



V 



HOW TO KEEP FARM ACCOUNTS. 



c/L a/M//'7o/C^ (^^f 


/ 


da / 


(ol 


iJ^^ax J^W^^feft/" <^f33.3l 












( 


^y {2^ ^/3.0o 




/o-^^C^/ 


















db / 


^S 


/^/m (^..,J^py ^^n^ ?i^// /^.^wr 




"^Qoo 


on 








' _ noT} ^/^//,cf(. j^ y^/o^ .foo°^ 














// /, „ Vx/o3 rSoa^ 














// ,, ///^o^ ^oo°- 














// /y /> /V^-T ffoo"- 














i^fCf^AJL/. 6h, '^CO^ifCUig OT^x^ 














^iztyyT^h/ . Mh^fcyu-a^ (^ "/o 














^ 










dc r 


^^ 


/yt/fr^LA^cti (/y^ /S'^ f7HJ^^7>\y /^-(9n^ 


iA^ 


/s 


oo 


/ 




/ 


^ ^//^ Or^^r/mj? ^r^^J 6^7^ 


— 




' 








V 










dd a 


^q 


/^^u^ffTK. /:i (hi. czfi^i^cr^^m^ ^4^ 


{p- 


/J?.oo 




/ 




1^ ^//o ^2^r^^^T^A^//'/m^^i^iiJ^c^. J 


L/ 












^ Co^tS^t^J^ 


> 






df 






A 


/Z:Zq3 


^/ 


__ 



TRANSACTIONS FOR APRIL, 1901. 
Having opened the Cash Book by entering the items shown 
in his statement of Resources and Liabilities in the preceding 
chapter, the transactions comimon to the rotation practiced by 
Fox follows. 

APRIL 8. 

He received a money-order of $15.00 from Wm. George, of Troy, Ohio, for 15 
bushels of Seed Corn. Freight C. H & D. R. R. 

48. It isn't practical to open accounts with each individual 
who may buy seed or other products from the farm, so Fox credits 
all sales to Production, and will open an account in the Ledger 
under that head. Refer to Plate 8, item dc, and note that full 
particulars of the transaction are given. This entry should be 
made immediately after the order is received. Then when he fills 
and ships it, he checks it, thus: 4-10, as shown on the plate. Note 
that the date the order is received is in first column, and the full 
explanation in third column, with the amount in the dollars 
and cents column. The figures 69 in second column is the Ledger 

52 



HOW TO KEEP FARM ACCOUNTS. 



^ C^^^ /^o/ ^^^^ ^ 



cb ^ 



GC 

cd 
ce 



/ 



/ 



^-y 



&r 



A£ 



I> 



<lj^^^yg>g;^»^<;<g^c;%y?^ . JOun^=t^6y^ 



/'y'iTe^^OC^C^Cci 



'<..<y>\y 



.^ 



<^V9ty/7££^t4^-/'yjZ^ 



J^J'Ct^ 



a^c 



ocoo 



/^^f ^" 



13 '^oo 



j^a. 



C6, 



Z&r^y^ry^. -^Mtrz^ 7U^ 



2^ 



oo 



V/S-f/^ac. Mr'^CA^ 



^?l/Mjt^a4^ ^ 'T'n 



cf y^^' 



fo 



~Z^^ZII^S^^^^^^^^2M- 



/^'90 



*cg 3o 



/^ ^J'a^t^.-<:^^>^ 



^:^ 



oo 



Z 



^ 



z 



Z 



•ch 



:z 



z 



\L. 



/Z3^1^ 



3/ 



page to which the entry is posted, and in this book, will mean the 
number of the Plate. In actual bookkeeping this second column 
of the Cash Book is used for the Ledger page. 

APRIL 9. 
J. Green, of Huntington, Ind., wants I2 bushels of Seed Corn shipped by Wabash 
freight and encloses a draft for $12.00 to pay for it. 

49. This transaction — item', dd — is the same as item do 
which immediately precedes it. Fox must debit Cash for all 
money received whether it is in currency, post-office or express 
money orders, drafts or checks. Always mention in what form 
it is received. 

APRIL 25. 
He pays Ed. Wise $15.00 for 12 days labor at $1.25. 

50. To open an account with each person one would have 



NOTE: — A Star * when found before an entry on either Cash Book 
or Ledger (see plate above item * eg) indicates that such entry should be 
■made in red ink. For reason ivhy refer to paragraph 10. 

53 



HOW TO KEEP FARM ACCOUNTS. 



to have as extra help on the farm involves too much detail, so Fox 
changes "Labor" for the amount of this transaction, because he 
wants to know what he pays for help during the year, and there- 
fore, must open an account for "Labor" in the Ledger to which 
all money paid for help should be charged. Refer to Plate 9, 
item cf. Refer to 183. 

APRIL 30. 

He balances his cash account for April and finds $425.00 on hand. 

51. It is now the end of the month and he balances his cash. 
Balancing the cash is simply footing the two sides of the account 
and the difference between them should be exactly what you have 
on hand. The difference for April, Pox finds is |425.00, which is 
the amount he has on hand. He now closes the account for April 
by writing in red ink: — the date, the word Balance, and the 
amount |425.00 on the credit side — see item; eg. He then rules 
the closing lines in red ink and writes between them in black ink 
the totals |12,273.31. (See Plate 8 and 9, item df and ch.) 

52. WHEN CASH IS OVER OR SHORT.— Every one makes 
mistakes and should one occur, such as an error in making change 
or in paying an account and omitting to charge it, and you cannot 
find it after exhausting every effort, the Cash Book can be made 
to balance as follows: If your cash is over — having more than 
you should as shown by the Cash Book, credit this difference to 
the Production account by writing on the debit side of the Cash 
Book "Production — Cash Over" which makes it balance. If short 
— if you have less cash than you should have according to the 
Cash Book, charge it to yourself, writing on the credit side of 
the Cash Book, "J. Fox — Cash short" for the amount of difference. 
In case you locate the eiTor later, debit or credit the difference to 
the proper account and debit or credit yourself or Production 
as it may have been entered at the time you could not locate the 
error. 

53. POSTING THE CASH BOOK.— Every entry appearing 
in the Cash Book must be posted or transferred to some account 
in the Ledger. The second column is used to enter the page of 

54 



HOW TO KEEP FARM ACCOUNTS. 



tlie Ledger to which the entry is transferred. On Plate 8, item da, 
you will note the Ledger page is 01. Turn to Plate 61, item da, 
and study the entry, Observe that in posting, items entered on the 
debit side of the Cash Book are entered on the credit side of the 
Ledger. The page of the Cash Book from which the entr-y is post- 
ed, is put in the fourth column of the Ledger. Refer to item db 
which is posted to Plate 65, items dc and dd are posted to Plate 
69. Follow these entries from the time the transaction occurs 
until they are completed, ie; posted to their proper accounts in 
the Ledger. 

The entries on the credit side of the Cash Book are all posted 
to the debit side of the Ledger. Fox has opened accounts with 
Clovermead Farm, Production, Implements, Feed, Bills Receivable 
and Labor. Refer to each item and compare the entry on Cash 
Book with Ledger entry. You will note the entries are complete 
in the Cash Book. They need not be so full in the Ledger. The 
examples given show all that is necessary. 

54. The Cash Book must be posted at the end of the month, 
if it has not been before, and a trial balance taken. This must be 
done at the end of every month. We take it to see that the books 
are in balance — that the entries in the Cash Book have been posted 
correctly. 

55. NOTE: — In posting observe the following order: (1) 
the amount, (2) the date, (3) the page of the Cash Book from which 
the item is transferred. 

Before you begin to post your Cash Book write in the second 
column, the pages of the Ledger to which the entries are to be 
posted. Then check each item as soon as you have posted it. It's 
a good plan to finish posting the debit side before you begin on 
the credit side — you're not so liable to post the entries to tlie wrong 
side of the account. 

56. TRIAL BALANCE.— Now comes the trial balance. Fox 
has gone through the month and still he doesn't know whether his 
books "balance" or not. A trial balance is taken once a month 
to see if all entries were made correctly, that is, if the debit side 
of the Ledger equals the credit. No set of books or system of ac- 

55 



HOW TO KEEP FARM ACCOUNTS. 



counts is worth anything to any business unless there is some 
check on them that will prove their correctness. That is why a 
trial balance is necessary, and as accuracy is the first essential 
in accounts, Fox takes a trial balance, and this is what he finds. 
Dr. TRIAL BALANCE, APRIL, 1901. Cr. 





CB 


Cash 


$ 425 


00 


Plate 


61 


J. Fox 


$10246 


31 


Plate 


62 
66 
68 

72 
74 


Clovermead 
Rills Rec'vable 
Production 
Feed 
Implements 


9600 

70 

1371 

25 

739 


DO 
00 

45 
86 
00 




65 


Bills Payable 


2000 


00 




80 


Labor 


IS 


00 


















$12246 


31 








$12246 


31 



His Ledger is in balance. That is the footings of the debit 
and credit sides equal each other. You will note he first enters 
on the debit side of the trial balance the amount of Cash on hand 
at the close of the last day of the month. Then taking the Ledger 
he goes through it, entering on the debit side of the trial balance 
all amounts found on the debit side of the Ledger, and on the 
credit side of the trial balance all amounts found on the credit 
side of the Ledger. This is always the case unless an account has 
entries on both the debit and credit side, and then, you find the 
dift'ereuce between the two sides. For instance, this month the 
debit side of the Production account (Plate GS) is |1,398.45 and the 
total of the credit side at this time is |27.00 (Plate 69). The dif- 
ference the two sides is |1,371.45 which he sets down in the ex- 
planation column on the debit side of the Ledger in pencil. This, 
then, is the amount taken in the trial balance. Remember, when 
an account has entries on both the debit and credit sides, to take 
the difference between the sums total, and the amount the greater 
exceeds the smaller is the amount carried to the trial balance. 

57. TO LOCATE ERRORS IX A TRIAL BALANCE.— If 
the debit and credit sides of a trial balance do not exactly agree 
the books are not in balance and the difference, no matter how 

56 



HOJV TO KEEP FARM ACCOUNTS. 



small, must be found. If they don't agree proceed as follows: 

First. — The footing of the balance should be verified. 

Second. — From the first account in the Ledger until the last, 
the addition and subtraction of each account should be carefully 
gone over. 

Third. — Examine each entry and see whether or not a debit 
has been made for every credit, and for every credit a debit for a 
like amount. 

Fourth. — If any accounts have been balanced and carried for- 
ward to a new page, see if the amounts carrier are correct. 

Finally, if the difference still remains, nothing can be done 
except to go over the entire work for the month and continue to 
do so until the error is found, for be it known, the trial balance 
is simply a copy of the accounts in the Ledger, and if the entries 
have been made properly the footing of the debit and credit sides 
will be exactly alike. 



57 







HOW TO KEEP FARM ACCOUNTS. 








o(> Mu^/ /(^o/ ^2^ ^7t/^ 


da / 




/:3a/ayi<.^uiy 




^XS'OO 


"~~ 




































































































































/ 














/ 












/ 












/ 












/ 










/ 


V 






db 


/ 


y, 


^z^ 


oo 





TRANSACTIONS FOR MAY, 1901. 

MAY I. 
Cash on hand $425.00. 

58. The amount of cash on hand at the beginning of the 
month is entered in black ink as shown in Plate 12, item da. 

MAY 2. 
He sends J. M. Whiten, Wakeman, O., New York draft for $16.00 for 8 bu. 
White Mammoth potatoes for seed. The bank charges him 10 cents for draft. 

59. Refer to Plate 13, item ca for the proper entry to make 
for this transaction. As to the reason for charging this to Ex- 
pense, refer to the matter relating to Expense which follows plate 
70. Note that he includes the cost of the draft in the entry. 

MAY 3. 
He buys 2 ton Middlings at $22.00 and a barrel of salt $1.50. 

60. See Plate 13, item cb. Fox wants to know how much 
Feed he buys during the year so he opens an account with it. 
That is also the reason he inventoried the Feed on hand which 
he had bought previous to April 1st. Read explanatory matter 
after Plate 72, regarding this account. 

MAY s. 
He has one thousand each of Envelopes ($2.50) and Letter Heads ($3.75) printed. 

61. On every farm there are certain articles which have to 

68 



HOW TO KEEP FARM ACCOUNTS. 



cMf^ /J /^^. /f^/ U4X U^ 



^ 



Q^ 



^^"K^ni^PUL^ f/^ u{/iutS ?1^A4^uyy\ff^ 



-Z£^ 



r^H^^^^^tiz^ @-^^/^- 



a/>K 



"'a^lfp' ^ 



cb J> 



^ 



-y 



^^tcCti^ ^ ^fet</ Mi^/^/(/nj^^ >^<f^ ^-^ 



^ 



£0 



/^^ 0^e^^ 



/ s£Ip 



W'rt/4uLt. yM Wv4^ ^.JT^ 



cc J" 



^ 



^-' 



/?^ c/u(^'A^i^i^Of 3.1s- 



^TuA/i^yytje/H^ ^^0 Jhe/A '^^iai/u^, A 'd^ . ^ /J 00 



cd /O 



n 



^/Uyyuit. d^^^<:zr^ C^^^Tr<^ -^ 



ce y^ 



^ 



Tc 



oa 



5l^ J^rnta. . (?i<uVX^M^ 



*cf 3/ 
eg 



_^^Jayt^yccy 



^0-0 



^cT- 



//-XS-QC^ 



be bought to be used in the maintainance and general business of 
the farmstead. All these incidental outlays should be charged to 
Expense. It is neither desirable or necessary to open more ac- 
counts in the Ledger than will show the results of the management. 
Too m,any accounts require needless writing and detail. This 
item of stationary is Expense. Eefer to Plate 13, item cc. Refer 
to 162. 

MAY 7. 
He has had so much trouble to get competent help on the farm, that he makes 
contract with Ed. Wise, who has been working for him off and on for some time, 
to work by the year at $300.00. Wise to board all the extra halp employed on the 
farm, and in addition to the wages agreed on, to have truck patch, pasture for cow, 
and house rent free of charge. Contract dated May ist. 

63. No entry for above — simply a memoranda. He files the 
contract — refer to (8). All money paid to Wise will be charged 
to him in the future and not to Labor. Read matter following 
Plate 78. 

MAY 10. 
He buys a Chicago Sheep Shearing Alachine — $15.00. 

63 He has already opened an account with Implements. 

59 



HOW TO KEEP FARM ACCOUNTS. 



All farm machinery bought must, of course, be charged to that 
account. (See Plate 13, item cd.) Refer to 173. 

MAY 25. 
He pays EH Jones $40.00 for Stallion Services. 

64. This is charged to Expense for the same reason that item 
ca was. For entry see item ce, Plate 13. Refer to 163. 

MAY 30. 
He balances his cash for May — $300.15 on hand. 

The difference between the sums total of the two sides 
of the Cash Book is |300.15. That is what he has on hand so he 
enters it in red ink (Plate 13, itemi cf) rules the closing lines and 
enters the footings of the two sides in black ink between them, 
just as he did when closing the April cash. 

The posting done he must again take a Trial balance to see 
whether or not his books are in balance. This he does and it fol- 
lows: 

Dr. TRIAL BALANCE, MAY, 1901. Cr. 





CB 


Cash 


$ 300 


15 


Plate 


61 


J. Fox 


$1024^ 


31 


Plate 


62 
66 

68 
70 
72 
74 
80 


Clovermead 

Bills Rec'vable 

Production 

Expense 

Feed 

Implements 

Labor 


9600 
70 

1371 
62 

73, 

754 

15 


00 
00 

45 
35 
36 
00 
00 




65 


Bills Payable 


2000 


00 








$12246 


31 








$12246 


31 



6S. Observe that the Trial Balance is simply the footings of 
the various accounts in the Ledger except where there have been 
entries on both the debit and credit sides on an account, and then, 
the difference between the two sides only is entered in the Trial 
Balance. Refer to the Production account, Plate 68. Entries 
have been made on both sides of this account and as the debit side 
is the greater the di!ft'erence |1,371.45 is what is entered on the 
debit side of the Trial Balance. 

60 



Transactions for June, 1 90 1 



HOW TO KEEP FARM ACCOUNTS. 



Jr 


Jmiu/'^d/ml ( 


:^ 


^'/C 




da / 








^o 


/jr- 


db ^ 


^f 


jt^rdzlcocyU^ry^ yOi^ //o/a, //u/v^-nx^A- ' 




/s- 


/o 








^ '/r^^z.c^/o r%^. 














/n^i r/y^:/rrzti.^ 
























'^ f 


6]^ 


/^C'dcc^<^:^U^ ^/V^ 1>G //a; <^^/6 ' 


I 


//^ 


/^ 






/ 


' 










^^ 7// 


^f 


p/i^azUc^fZi^ /"/c^^ ^ dv >Ja //fj 




T-^cT 


^ 






/ 


a)J^'^o 




























/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 


















^ 






de 




y 




M4- 


i'/ 





TRANSACTIONS FOR JUNE, 1901. 

JUNE I. 
Cash on hand '$300.15. 

66. Immediately after the cash is balanced for the month 
you must enter amount on hand as shown by item da, Plate 16. 
This is done every time the cash is balanced — daily, weekly or 
monthly. If many transactions occur it is best to balance daily, 
or weekly at the latest, where but few take place, once a month 
will answer as shown in this illustration. 

JUNE 2. 
Wm. George, of Troy, Ohio, to whom Fox shipped Seed Corn on April loth, 
writes that it hasn't arrived — that it's now too late — he can't accept, and wants 
his money refunded. Although a shipper's responsibility ceases when goods are 
delivered to R. R. Co., he refunds the money ($15.00) and makes cleaim to the 
C, H. & D. R. R. for the amount lost plus the expense of draft. 

67. Rather than antagonize a customer Fox decides to col- 

62 



HOJV TO KEEP FARM ACCOUNTS. 



{7Urn hho/^0//^, 



^ 



6e 




(y^a dcccf/^^m, . g<^t^g^ /^>- ^^'^^^^W;^ c^^^ 



CiTrM^/zo/or 'Q^i^r^rrZ/? 



tM^ {^^^r'^ai^jLy 



/^~<^. 



^e^ 7d>^ 



cb 'y 



lo 



M 



H^AlJl^ 



X)>c 



ig^i>>^-/: 



^ 



7 



-y 



IL 



(Ji^Yf^/^^ r^^ ^^x...^ 



^&/ 



OyV rjy~^^ 



/S7o 



cd_/_ 



^ 






3 



Go 



/^^'iO.in^ ^n^ 'T^ai-o-^^- ^. c^o 



ce ^--V 



d^d? 



c/!aJzr7- ^^it*tMi^ ^^^ /^° <^ - 



/^ 



Oo 



J^L/r^^ 



^ 



^^ 



'-^VYtd YStdMAO^fVCe JilUfU ^^^fUe/ 



cf :W 



A' 



s> 



7T 



^; 



^6^. 



eg 'y^ 



u 



'<^U 



^^r,^^^^^^^^ 



^<7:? 



/^t^t^gyj/v^i^c^ 



*ch ^ 



7^- 



^r/ ^ 1 



^ 



2^ 



y/ 



lect the amount of this shipment from; the R. R. Co., himself. 
First. — He has no account with George, so when he sends draft to 
George for the amount of loss, he must debit the account to which 
the sale was credited, to Production. (See Plate 17, itemca.) 
Second. — The draft costs 10 cents which he charges to Expense. 
(Plate 17, item cb.) Third. — Fox is now out the Seed Corn and the 
expense of draft; so he charges the C. H. & D. R. R. with |15.10, 
the amount he is short by the transaction. Plate 17, item cc.) 
Fourth. — In double entry there must be a debit for every credit, 
and having debited the C, H. & D. R. R. with |15.10, he must also 
credit Production for the same amount. (Plate 16, item db.) In 
making claims to Railroads they insist on the original Bill of 
Lading in total losses and both the Bill of Lading and Expense 
Bill (Freight receipt) where partial loss is sustained. To make 
claim for loss, such as described in transaction above, the foUow- 

63 



HOW TO KEEP FARM ACCOUNTS. 



ing is necessary: (1) Copy of Invoice to George. (3) Original Bill 
of Lading. (3) attach (1) and (2) to an invoice made out in name 
of R. R. These shonld be given to the local agent. But R. R'». 
move slowly in paying claims. After a reasonable length of time 
it is well to stir them up at intervals, and let them know you are 
looking after your end — are a business farmer and know what 
you're about. Refer to 197 and 199. 

JUNE 8 

He sells his wool — 726 lbs., at i6c. Pays 60c for „re-setting" two shoes on 
Quten, and $3.00 for repairs on Mower. 

68. First. — Fox doesn't want accounts opened with every 
thing he grows — too much detail. His sales are all entered to the 
credit of his Production account, hence, the Wool sold above is en- 
tered as shown on Plate 16, item dc. See 158. 

Second. — The inevitable Expense again. But his horses must 
be shod, and the Clover is coming on fast. The Mower is now 
ready. Both charged to Expense. (Plate 17, item cd.) See 161 
and 163. JUNE 22. 

He pays John Dye and Sam Petit each $6.00 for four days' labor. 

69. Labor, too, is quite an item and he wants to know how 
much it costs him for the year. All extra help he employs he 
charges to Labor account. For entry see Plate 17, item ce. Refer 
to 183. JUNE 24. 

He sells 20 Hogs, averaging 230 lbs. each, at $5.40 and pays his June taxes — $32.64. 

70. First, — As everything Fox sells off the farm is credited 
to Production, the proceeds for the Hogs is credited to that ac- 
count. (Plate 16, item dd.) Second. — He opens an acount for 
Taxes and Insurance. (Plate 17, item cf. Refer to 193. 

JUNE 28. 
Ed. Wise draws $20.00 on account. 

71. Although this item is for Labor, yet. Wise is hired by 
the year and wants to draw his money as he needs it. This neces- 
sitates opening an account with Wise, and all money drawn by 
him must be charged to him. (Plate 17, item eg.) Refer to 177 
and 178. june 30. 

He balances his cash — $581.37. on hand. 

The cash on hand in $581.37 and as that agrees with the bal- 
ance shown by the Cash Book he rules the closing lines as he did in 
April. (See Plates 16 and 17, items de, ch and ci.) 

64 



HOW TO KEEP FARM ACCOUNTS. 



Dr. 


TRIAL B^ 


lLAI 


SICE, JUNE, 1901. 


Cr. 






CB 


■Cash 


$ 581 


37 


Plate 


61 


J. Fox 


i 
$10246131 

1 


Plate 


62 

66 


Clovermead 
Bills Rec'vable 


9600 
70 


00 
00 




65 


Bills Payable 


1 

2000|00 

1 
1 




68 


Production 


1006 79 








1 




70 


Expense 


6605 












72 


Feed 


73 


36 










" 


74 


Implements 


754 


00 










" 


78 


Wise 


20 


00 












8o 


Labor 


1 
27 00 








1 




" 


84 


Taxes 


32I64 








1 




« 


86 


iC. H. & D. Ry. 


15 10 
1 
1 








1 
I 
1 




1 1 1$I2246|3I 1 








1$ 1 2246 


31 



Trial balance for June is shown above. 



65 







//O^F TO KEEP FARM ACCOUNTS. 








JIT XuL. /f^/ /^^ (^M^'-~<2jo 


. , V y 


da / 




/W^^U^tyl-x^-C-^ 




.^r/ 


^1 


















db /cr 


^7 


/J/{'/'j/r'(</M^,/fcy- /f',^rr/7i^ 




lo 


oc 






/ 












do /J' 


/3 


^^^U^ <^l /-^^"TJ^r^ 7t^ 




^ 


2-0 






















^ 














^^ 














^^ 














^ 








df 




-^ '''^ — . 




,s-j' 


n 





TRANSACTIONS FOR JULY, 1901. 

JULY I. 
€ash on hand $581.37. 

Whenever the cash account is bahmced — whether daily, 

weekly or monthly the first entry after balancing is to debit cash 

for the amount on hand. (Plate 20, item da.) 

JUIY IS. 
VVm. Wood pays his note of $70.00 due today with interest at 6%. 

72. All notes we hold oiven to us in settlement for money 
loaned or in payment of products sold are debited to Bills Receiv- 
able. Wood pays his note today with interest. We now credit 
Rills Receivable for the face of the note as shown on Plate 20, 
Item db. (See 143 and 147.) 

We must also ci*edit the interest, therefore, open an account 
with Interest and credit it as shown on Plate 20, item dc. (Look 
up 18C and 189.) JULY 20. 

He sends the Breeder's Gazette $6.00 and the National Stockman $5.20 to pay 
for his advertisement of Seed Corn. The money-order cost him 16 cents. 

73. As the amount Fox pays for advertisinjj: is small he 
doesn't open an account with it but charges it to Expense. See 
Plate 21, item ca. Refer to IGl. 

JULY 21. 
He accepts the Stock Scale put in for him by E. Thomas and pays $65.00. 

74. Although scales might be considered under the head of 
15uilding and Improvements, yet. after putting them in they are 

66 



HO IV TO KEEP FARM ACCOUNTS. 




/^^/ 






y^- 



ZLiC 



OiVi^/crvMc 



a^yi^ 



^^ 



^'M^ c^yt<n>/Cn\iPn c^ 



^/n<^r(^^ 



/(o 



^Lyyt<ixy d^^^-Ci/C-^C/tA^ gJA^/th^^ 



cb >>' 



^J 



<^r^X ^^ /^^^ (g .^?~ 



><f 



V 



-'^-2 :?d/ 



/^^T^ 



*cd -3/ 



^^^?<-g^-^ 



>!■ 



dj£^7jl 



6S~S-S. 



S 



a part of the farmstead's equipment as much as are fences or sheds. 
Rather than charge to Improvements and inventory them from 
year to year, Fox prefers, as they are a fixture, to charge them at 
once to Expense. (Plate 21, item cb.) Read 129. 

JULY 28. 
He buys loo bushels of Oats at 32c. 

75. Fox doesn't grow any Oats. He buys them to feed and 
so charges to Feed as he wants to know how much he pays for it 
during the year. (Plate 21, item cc.) Refer to 168. 

JULY 31. 

'Cash balance today shows $547.21 on hand. 

Refer to April, May and June closing of cash accounts. (Plate 
21, item cd.) 

Dr. TRIAL BALANCE, JULY, 1901. Cr. 





CB 


Cash 


$ 547 


21 


Plate 


61 


J. Fox 


$10246 


31 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


00 




68 


Production 


1006 


79 


" 


83 


Interest 


4 


20 




70 


Expense 


142 


41 














72 
74 


Feed 
Implements 


105 

754 


36 
00 














78 


Wise 


20 


00 














80 


Labor 


27 


00 














84 


Taxes 


32 


64 














86 


C. H. & D. Ry 


15 


10 














1 [$12250 


51 








($12250 


i£ 



67 



HOW TO KEEP FARM ACCOUNTS. 



If care is used when postino- the Cash Book and footing the 
different accounts in the Ledger no great trouble need be found in 
taking the Trial Balance. Note the Bills Receivable account 
doesn't appear in this month's balance. That was paid and as 
the account balanced, is now closed. 



68 



Transactions for August, 1901 



HOW TO KEEP FARM ACCOUNTS. 



cJr l^tcuxxAyf^ /^^/ ^^dZ ^^ ^^ 


da / 




/^ayayyt.<.cy 




-^^7 


2-t 


■IMM 










/ 






db J^ 


H 


(^^r?Ucc:^<>>r^ OOfu^ foo 6w(^fo^ 




^¥-0 


00 


















































/ 




























^^ 














^^ 














^^ 














^^ 


> 






do 




^ 


), 


//fl 


>l 





TRANSACTION FOR AUGUST, 1901. 

AUGUST I. 
Cash on hand $547.21. 

Refer to previous months. (Plate 24, item da.) 

AUGUST 3. 
He gives Ed. Wise $10.00 on account. 

See Plate 25, item ea. Refer to 177 and 178. 

AUGUST IS 
The roads are good and he ha.s time, so he puts in the coal needed for winter — 
10 tons, at $5.75. 

76. All money drawn for personal use should be charged to 
Fox. He buys the coal, now that he can put it in for winter, and 
charges the amount it cost to his (Fox) personal acount. (Plate 
25, item cb.) See 110. 

AUGUST 23. 
He pays Joe Morgan $24.00 for threshing 800 bushels Wheat, at 3c. 

77. Fox charges his threshing bill to Expense because at 

the end of the year by keeping his Production account distinct it 

shows at the close just what he annual sales from the farmstead 

amounts to. (Plate 25, item cc.) Refer to 161 and 163. 

AUGUST 28. 
He buys 100 lbs. Linseed Meal at $27.00 a ton, and a Keg of Nails, at $2.70. 

78. First. — He charges Linseed Meal to Feed. (Plate 25, 
item cd.) See 168. 70 



HOIV TO KEEP FARM ACCOUNTS. 



Gid^a^f ^c<A A/^/ ^/6 C/^ 


ca 3 


7<f 


tj (JJaUL &n CU^CcfK^nA- 




/«:> 


Oo 


















cb /^ 


^o 


^^0% 6^ /O^^ <^<f2^ 




-^^ 


i^ 








(^ ' 




/ 






cc ^-J 


lo 


OI^^^UuU. <7hrtcaA.o>^^y focrirU (^(77u^ 


^ 


^ 


oo 








^ (^^*^ Jce 97UrzfA2^yxy 














cy ^ 










cd 7^ 


7^ 


^&^ ry^^^TH/A/ /c^oU<^ (Py/'J''-^ 


/ 


^^ 






/ 




I 








ce >-^ 


7^ 


^/t£4i^t /^/^^ O'kf^l/Cl^^ 




^ 


7" 






/ 


/ ^ 










*cf 3/ 




/<^U^UU<-^:^^ 




/^^/ 


(^C 




eg 






^ //^7 


^( 





Second. — The nails to Expense.. (Plate 25, item ce.) Kefer 
to 162. 

AUGUST 30. 
He sells 800 bushels of Wheat at 80c. 

79, All products sold — no nuatter wnat, he credits to Produc- 
tion. (Plate 24, item db.) Refer to 158. 

AUGUST 31. 
He balances his cash — $1,091.66 on hand. 

Refer to April and May closing. The entry, (Plate 25, item 
cf.) 

Dr. TRIAL BALANCE, AUGUST, 1901. Cr. 





CB 


Cash 


$ 1091 


66 


Plate 


61 


J. Fox 


$10188 


81 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


GO 




68 


Production 


366 


79 


" 


83 


Interest 


4 


20 




70 


Expense 


169 


II 














72 


Feed 


106 

1 


71 














74 


Implemaiits 


1 754 


00 














78 


Wise 


30 


00 














80 


Labor 


27 


00 














84 


Taxes 


1 32 


64 














86 


C. H. & D. Ry 


15 


10 
















I$r2i93 


01 








$12193 


01 



71 



HOJV TO KEEP FARM ACCOUNTS. 



•— / ' ■' — ' 1 


da / 




/^a/a^p^^^^ 




/^^/ 


^c> 




























































































/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 


- 


' 






db 




/ 


/i 


/OCf f 


U 


t=i, 



TKANb^AOTIONS FOR SEPTEMBEK, IDOl. 

SEPTEMBER i. 
Cash on hand $1,091.66. 

For entry see Plate 28, item da. 

SEPTEMBER 5. 
He buys 2jX tons Fertilizer at $18.00. 

80. Expense. (Plate 20, item ea.) See 162. 

SEPTEMBER 7. 

He sends draft to Geo. E. Scott, Mt. Pleasant. Ohio, for yjVi bushels Fultz 
wheat for seed at $1.00, F. O. B. Bank charges loc for draft. 

81, This transaction charged to Expense. (Plate 29, item 
ca.) Refer to 155 and 162. 

SEPTEMBER 8. 
Two tons of Middlings cost $24.00 a ton. 

83. Feed. (Plate 29. item ce.) Refer to IGS. 

72 



HOIV TO KEEP FARM ACCOUNTS. 



^4. 



wr^ dMf^ny{Ur ^f^/ 



(^^ 



ca ci" lo f^c/i/^fuu^ v^eA/7-/AjOr ^'6-^(3>/f<lE 



^<ft> 






eb 



i 



7- 



^ 



oo 



■^^t^-i^c^ 7;tJ^(///jL^:^:uY) 



^!k^ 9^tcdX^U^^ ^-7^ ^. .S^ 



f 



V 



^Oo 



jj^ov a, i^ oy^x^ 



cd 



lo. 



(po 



^ 



^0 Oo 



IL 



^/u^pt^ut^ -Ve^/(> i?H^--<^^J7l/Aoty^ 



ZSL 






;f O^d 



<f Op 



c/^k/^n- J^sr^L./3.c^ /o^^xy^^/^^ 



cs .^Z- 



J'd 



yji fd 



y^^a. 



ci 



tZ'-yi.r^^^ 



i>^^ 



y/'?^ 



/^f/ 



SEPTEMBER lo. 
He gave his wife $20.00. 

83. A personal matter with Fox, and charged to his person- 
al (J. Fox) account. (Plate 29, item cd.) Refer to 110. 

SEPTEMBER 18. 
Freight on Seed Wheat costs $2.56. 

84. Expense. (Plate 29, item ce.) Refer to 155 and 1G2. 

SEPTEMBER 20. 
He buys 4 bushels of Timothy Seed of the Phillips Seed Co., Toledo, Ohio, for 
which he pays $8.00. 

85. Expense. (Plate 29, item cf.) Refer to 155 and 162. 

SEPTEMBER 28. 
He pays John Betts $12.50 for ten days' labor. 

Labor. (Plate 29, item eg.) See 183. 

SEPTEMBER 30. 
His cash on hand amounts to $918.00. 

He balances his cash for the month. (Plate 29, item ch.) 

73 



HOW TO KEEP FARM ACCOUNTS. 



Dr. 


TRIAL BALANCE 


SEPTEMBER, 1901. 


Cr. 






CR 


Cash 


$ 91800 


Plate 


61 


John Fox 


$ioi68|8i 


Plate 


62 


Clovermcad 


060000 


" 


65 


Bills Payable 


2000 


00 


•• 


t>8 


Production 


366 79 


" 


8.^ 


Interest 


4 


20 




;o 


]'2xpense 


262 27 














/ - 


I'Ocd 


15471 

1 














74 


ImpltMiients 


7541O0 














7S 


Wise 


3000 














80 


Labor 


39 5® 














84 


Taxes 

1 


32164 














86 


C. IT. & D. Rv. 

1 


15 10 
















l$i2i73loi 1 








$12173 


01 



The Trial Balance is ai?ain taken and is simply the fare 
of the Ledjrer. It shonld be taken every month. 



74 



Transactions for October, 1 90 1 



HOIV TO KEEP FARM ACCOUNTS. 



c^ (jCAAf^/f^/ ^^ (y^z^S:i, 



da / 

dt> /s 



/c)a/ayyLXiJg^ 



<//f 



^f 



C^rvT^AA^^ry^ /^^ Ar^ /f ^/^/ ^ 



^^t 



2^¥^ 3S' 



dc\ 



>^ 



£i. 



(^riTT^AAxtA^r)^ (^Wa:/:^!^ /S'o6a ^^A' 



£Z 



l5^ 



O^rtrr^touctiin^ OcPk/a^ ^^ ^4^ ^ 



dd >^ 



£^ 



X^3 



:^i^ 



de 



/Z^Ti 



-r^ 



TRANSACTIONS FOR OCTOBER, 1901. 

OCTOBER I. 

Cash on hand $918.00. 

Plate 32, item da. 

OCTOBER 3. 
He gives Ed. Wise $10.00 on account. 

Plate 33, item ca. Refer 178. 

OCTOBER 15. 

He sells 25 head of Hogs, which average 195 lbs, for $5.25. 

86. Production. (Plate 32, item' db.) See 158. 

OCTOBER 20. 

He sells 150 bushels of Potatoes at 45c. 

87. See Plate 32, item dc. See 158. 

OCTOBER 25. 
He takes 20 bushels of Potatoes for personal use, and also gives Ed. Wise 20 
bushels, market price 45c. 

88. Production should be credited for anything taken for 
personal use from what is raised on the farm. We credit Produc- 
tion, (Plate 32, item dd,) and debit both Fox and Wise for the 
number of bushels thev take. (See Plate 33, item cb aad cc.) 
Refer to 110 and 179. 

OCTOBER 30. 
He pays John Betts $1.25 a day for 15 days' labor. 

Labor. (Plate 33, item cd.) See 183. 



HOW TO KEEP FARM ACCOUNTS. 



^f^^3 (Pefd^/e^ /^^/ c:^ 



(^k^^A 



c: ^ 



7/ 



d^^l£_ 



<^^^2:ti<j^ 



/O 



cb y^ 



^o 



J^zr/^ c^v Jl^A^ ^^^-^^^/^ ^^s"=^ 



^ <70 



L^ 



cc -y^ 



2L 



^ /fu:^ ^^(Ja^&/^ (^-^; 



^ 



^^ 



.X/:^^ SMj^£/^ /ji^oj. sy-- 



So 



fo 



V 



T 



Z£^:: 



/o^a^ 



* ce ^ 
cf 



ZlyK-C^^ 



1' 



z^^^ 



^ 



/>^eO 



£2 



OCTOBER 31. 
He balances his cash — $1206.13. 

Plate 33, item ce. 

Dr. TRIAL BALANCE, OCTOBER, 1901. 



Cr. 





CB 


Cash 


$ I206|i3 
1 


Plate 


61 


John Fox 


$10159 


8r 


Plate 


62 


Clovermead 


1 
9600 1 00 

1 


'• 


65 


Bills Payable 


2000 


00 




68 


Production 


31 


91 




83 


Interest 


4 


20 




70 


Expense 


262 


27 














72 


Feed 


154 


71 








•* 






74 


Implements 


754 


00 








' 




78 


Ed. Wise 


49 


00 










80 


Labor 


58 


25 












84 


Taxes 


32 


64 












86 


€. H. & D. Ry. 


15 


10 
















$12164 


01 








$1216401 



HO IV TO KEEP FARM ACCOUNTS. 



<^ 



/Jc'Trn^.f'^ /^^/ ^^ 



'^?^^ 



da / 



^i^^^^^- 



/^^(^ /S 



db /'r 



b(Y 



O^-rTT-r/^^^'A^r^ c^^a^n^^//-) d^, ^/<f//js ^cT— 



(iJc 



(>s 



(If > <^ 



^r/ 



^'r^^U^-^.^^ -/^a ^Oa^ :^ >o//js (^.rS^ 



'/J-lc 



<^^^h^t^.<-:^i^, ^^^ /6oo ^ ^<^^ '^ 



dd 



^. 



;^ 



■t^ 



^ 



y^ 



O Oo 



/1^'^M.a.nu, t<>^/cr ^.^ c;;.^ 



./^ 



■^'■ 



V<ff 



^^ 



TKANSACrriON FOII NOVEMBER, 1901. 

NOVEMBER i. 
Cash on hand $1,206.13. 

Plate 36, item da. 

NOVEMBER 15. 

He .sells 117 Iambs, averaging 98 lbs. each, at $5.50, and buys 500 bushels of 
corn at 30c. 

89. The liUnibs credited to Productiou, (Plate 30, item db,) 
and the Corn charged to Feed. (Plate 37, item ca.) See 159 and 

1G8. 

NOVEMBER 20. 

He sells 34 head of Hogs at $5.25. Average weight 220 lbs. 

Production. (See Plate 30, item dc.) See 159. 

NOVEMBER 23. 
lie pays for Husking and Shredding his Corn crop, 2.000 bushels, at 254 cents 
a bushel. 

90. Expense. (Plate 37, item cb.) Kefer to 103. 

NOVEMBER 29. 
According to contract made in March he sells the Williams Seed Co., of To- 
ledo, his crop of corn for seed at 25 cents a bushel above market price. 1,600 
bushels at 60 cents. 

From the above we note that Fox has contracted his corn crop 
at 25 cents a bushel above market price. Ilis crop of 2,000 bushels 
after sorting; left 1,000 busliels of prime seed, which he now de- 
livei^s. The price, 00 cents, is 25 cents above the market price. 
Fox feels he can m-cII alTord (o raise corn by conte'act and buy all 

78 



HOH^ TO KEEP FARM ACCOUNTS. 






31 /^'J^^.'/n/^r /f{^/ UUlC C /"^ 



/cT 7^ ^-^^/ ^^ ^'^OQ.^o &^-r^^ 



y< 



O ?o 



^/c/^i.i^' /'^■ui4L /5^v^y/v ^ooo //7 



cb y3> 



121 



Ct-fyr^i^ Cg- 



So 



CC Jl-o 



tfxr- '^a.^^^rr^ cZU'^uyc^ii^ /o ^^^^<? i^ / ^ ^ ' 






^^2 



C^ 



*^cd ^ 



^aJk^ 



^' 



^^^4^ 



^ 



•3/A'f\^C 



he needs to feed at these figures. He credits Production. (See 
Plate 36, item dd.) Refer to 158. 

NOVEMBER 30. 
He pays John Betts and Sam Pettit each $12.50 for ten days' labor, and 
balances his cash — $2964.46 on hand. 

liefer to Plate 37, item cc and cd for above, and look up 183. 



D 


r. 


TRIAL BALANCE 


NOVEMBER, 1901. 


Cr. 






CB 


Cash 


$ 2964 


46 


Plate 


61 


J. Fox 


$10159 


8t 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


00 




70 


Expense 


312 


27 


" 69 


Production 


1951 
1 


42 




72 


Feed 


304 


71 


" 83 


Interest 


1 

4 


20 




74 


Implements 


754 


00 












78 


Ed. Wise 


49 


00 


1 










80 


Labor 


83 


25 


1 
1 










84 


Taxes 


32 


64 


1 










86 


C. H. & D. Ry. 


15 


ID 
















$1411543 


1 


$14115 


43 



The Trial Balance is given to show how it varies from month 
to month. Compare it with those that preceed and follow it. 

79 



HOW TO KEEP FARM ACCOUNTS. 



o<d> cpSex:uU^ Ho/ C^:^^ ^a^^^ 


da / 




^4/a.^t<^<!:-e^ 




'^Vg'^ 


VC 


















db J' 


6^ 


(yy^ e;!6c<..c/^CO^ A^^ S£i-^ 77^o//fj (^^ 


So 


^ 


Cq 






^ 


c^fi^Tr^^ ^ e^:-.^' 






















■ 


dc /■ 


^i 


^^^^7>X^^<^^fe- '^^/^yC' ^ZU^P-J>/XS (^. 


^J^ 


S<F. 


l^ 






/ 


c^^^^^*— V^2/<-<^,r7t--^ -<^<^<LJi- 














/ 










Hd ^S 


/■^ 


j%^^ /r^//^.^^<r ^r^/ 




^J-a 


s'o 


















de 7-3 


/f 


J^^^u^ :^y/f ^^^^H^<r c/(rjz 




/a 


OO 






/ 






























^ 














^ 














/" 














^ 














^ 














^ 




' 






df 




^ 


' 


S loi^ 


34 


_ 



TRANSACTIONS FOR DECEMBER, 1901. 

DECEMBER i. 
Cash on hand $2,964.46. 

DECEMBER 5. 
Ed. Wise wants 3 Hogs to butcher, same to be charged to his account. Weight 
averages 240 lbs., at $5.50. 

91. This entry is similar to that of October 25th. Wise is 
charged with the amount (Plate 41, item ca) and Production 
credited. (Plate 40, item db.) Refer to Examples 88 and 179. 

DECEMBER 8. 
He butchers 3 Hogs himself. Average vi^eight 232 lbs., at $S-50. 

92. Credited to Production (Plate 40, item dc) and debited 
to J. Pox (Plate 41, item cb) for the same reason as given under 

Transaction of October 25th. Refer to 110. 

80 



HOW TO KBBP FARM ACCOUNTS. 



^/ cpde<^pt/er -/f ^/ (^^ C^^ 



~^^ 



~^~^Z^ 



cd /oT 







C^^'^^Zy/Ct^i^^^Ln. /^ (^^^^ ^^^ »t^ 



<^^ ^ ^^^-TT^ J^ffc.r^t.*tJ^ ^^ ''^ 



^^^-^C X^^ C^aJ(:i^ ; 



g^'^>g<^^x^-^ (^<g ^ ^^^i^^^^m-rt^c^^t^x^ 



^/^^/^^^^eU^ /^ ^r^^^pg^ 



^"^^ 



^^^^ j^ g^^'k-^oy..^ /^ ?^^ rt^tir 



r^^l^^c<.-t^<-^^ .»-^ — 



c^^g^ /^^/gSwT c^^^hi^'f'o-o^ 4 



eg 7-^ 



//=- 



>7cro 



ch. 7^ 
ck 



£^^^ 



/6<i^ 



/"^^ 



:^ 



e>r-o 






^r^2^ 



/<y 



t 



^s 



^ 



y/<g' >- y^^ 



DECEMBER lo. 
He has some shoeing done, $4.75. 

Expense. (Plate 41, item ec.) Refer to 163. 

DECEMBER 15. 
He gives his wife $50.00 and takes $47.00 himself for personal use. 

93. Ohapged to his personal account (Plate 41, item cd.) Re- 
fer to 110. 

DECEMBER 18. 
Ha buys 200 bushels of Oats, paying 30 cents. Renews his subscription to the 
Breeders Gazette, ($2.00) National Stockman, ($1.00) Ohio Farmer, (60c) Farm 
Journal (40c), Rural New Yorker ($1.00) Practical Farmer, (60c) and the 
American Sheep Breeder ($1.00) making a total of $6.60. He pays 12 cents for 
money-orders, and for postage stamps $2.00. 

94. Oats charged to tlie Feed account (Plate 41, item ce). 
Subscriptions to farm papers he charges to Expense (Plate 41, 
item cf). The money-orders and stamps are also Expense, there- 
fore, he includes it in the same entry. Refer to 161 and 168. 

81 



HOW TO KEEP FARM ACCOUNTS. 



DECEMBER 20. 
He begins to think he ought to have a bank account. Doesn't like the idea 
of having so much money in the house, therefore, he opens an account with 
the First National of his County Seat by depositing $2,750.00. 

95. Fox charges or debits the bank for the money he deposits 
today (Plate 41, item eg) and will open an account with the Bank 
in the Ledger. It is true that many take exception to keeping the 
bank account in the Ledger, and some accountants characterize 
it as "old fogyism" but the conditions which govern farm account- 
ing are different than those of commerce. The farmer will find 
it a great source of satisfaction to have it there — ready to refer 
to at any time. Pui-ther, when the bank returns him his cancelled 
checks, he can compare those cancelled with those given out and 
tell at a glance if any have not been presented for payment. But 
more than all, a farm Ledger should show for various reasons, 
every .business transaction of the farmstead for the year. It's 
more than likely the owner himself will keep the books — or rather 
book, and if death should suddenly ensue, the Ledger ought to be 
kept so as to furnish a guide to those of his family who take-up 
the management of the farmstead and continue it along prosperous 
lines. Refer to 212. 

DECEMBER 23. 

He gives Ed. Wise check for $50.00, and also writes another for $10.00 for 
personal use. 

96, He debits Wise for check (Plate 41, item ch) and as this 
is the first check he has given out, he numbers it No, 1. He has 
now debited Wise, but as lie is going to open an account with the 
Bank in his ledger he must also credit the Bank for this check 
No. 1 which he does in Entry dd, Plate 40. In posting this entry 
dd to the Bank account (Kefer to Plate 89, item dd) he writes 
in the explanation column Ck. No. 1, so that when comparing tlit 
cancelled checks returned by the Bank about the first of the month 
he can check over the account and see just what checks have 
been presented for payment. On the stub of his check book he 
also writes the number so that he can number each check as he 
makes it without having to refer to the Ledger account to find 
the number of the last check. 

He also charges himself for Check No. 2 which he makes for 

82 



HOM^ TO KEEP FARM ACCOUNTS. 



personal use (Plate 41. item ci) and credits the Bank (Plate 40, 
item de for same.) Refer to 110 and 178. 

DECEMBER 31. 



Cash balance shows $43-99- 

Dr. TRIAL BALANCE, DECEMBER, igoi. 



Cr. 





CB 


1 t 

Cash 1$ 43(99 


Plate 


61 


J. Fox 


$10014 


53 


Plate 


62 


Clovermead 


1 
9600I00 

1 


" 


65 


Bills Payable 


2000 


00 




70 


Expense , 325174 


" 


69 


Production 


2029 


30 




72 


Feed 364i7i 
1 1 


" 


82 


Interest 


4 


20 




74 


f 1 
Implements 754loo 
I 














78 


Wise 


13860 














80 


Labor 


8325 














84 


Taxes 


3264 














86 


C. H. & D. Ry. 


15 10 












" 


88 


First Nat. Bk. 


2690 00 


















$14048 03 






$14048 


03 



88 



HOW TO KEEP FARM ACCOUNTS. 



r-^ j/^^^lMyu^^ /f^ -y ^^aZ ^^^^^ ^^ 



da / 



db 



:^^^ 



^j 



^ 



^ 



J^Ua^ M/A^r 



^/Tt^ 



^>-c 



J^ /^-^ ^^^hJ' S^ cfooP 



^X^ Tjt/i^X c:0^ '^^Ca^ 



/ >0 



dc />- 



^ 



^^2^ Ttcf /fh-^C 



e/:^^ 



SiD 



^ 



dd__2-_ 



^ 



(5//7<^/€/e 



_^^^ 



/^/o 



de ^ 



df 



/^ 



<^U^ Mf '^^^H^(' 



^^v 



:^ 



,Z>^ 



-?^^4^ 



Cash on hand $43.S)9. 

Plate 44, item da. 



TRANSACTION FOR JANUARY, 1902. 

JANUARY I. 



JANUARY 2. 



He pays his note of $500.00 due today, and interest on mortgage held by 
his bank. 

97. First.— Debit Bills Payable. (Plate 45, item ca.) Refer 
to 137. 

Second. — Debit Interest for amount paid on mortgage. (Plate 
45, item eb.) Refer to 187. 

Third. — Credit the Bank for check No. 3, covering the note 
due today and interest on mortgage. (Plate 44, item db.) Refer 

to 213. 

JANUARY 12. 
He draws $30.00 from the bank for expenses and attends the annual meeting 
of the State Board of Agriculture. 

Two Entries. Plate 45, item cc, and Plate 44, item dc. Refer 
to 110 and 213. 

JANUARY 22. 

The C, H. & D. sends him check of $15.10 for his claim made in June, 1901, 
for Seed Corn lost in transit. 

The C. H. & D. finally pay him for shipment lost the April 
previous and as he had opened an account with them, he now 
credits them. (Plate 44, item dd.) This is equivalent to "Ac- 
counts with persons to whom we sell "Produce." See 197. 

JANUARY 30. 

He pays his December 1901 Taxes, $32.64, by check, and deposits the check for 
$15.10 received from the C, H. & D. to his credit in the Bank. 

98. Taxes debited to Taxes and Insurance (Plate 45, item 

84 



HOW TO KEEP FARM ACCOUNTS. 



Uf^ ^S jl^Uu^LM^^ /f^z (^^^k^^^^-'^'C^ 



ca -y ^^ \{%ZC^(ya^,U^ TT^ 



^>7^> 



'oF^ 



cf^i 



cb ?- f-y 



cc /> 



(^ O 



^?^^.<^ 



^ 



.-^^^^ "^ 



^^y?! ^i>i^Tn^ 



/^ 



(^yc*^ 



.3t^ 



2j2 



cd ,^ ^ 



g^^-^o nP?t-M'uuiyH.r^ £-<^y^tYA, C/r'^s' 



ce^^_^ 



6^W /^//^^i.^( X^^/g^ g^ 



^>' <,Cy 



/rS~^0 



"Cf ^ 



/O^yl 



^v/ 



£^ 



:^ 



•g 



^Z 



ed). Refer to 194. The C, H & D. check he deposits in the Bank 
to be credited to his account, therefore, he debits the Bank (Plate 
45, item ce) for the amount of the check, $15.10. Refer to 212. 



He balances his cash — $43.95 


JANUARY 31. 
on hand. 










Dr. 


TRIAL BALANCE, JANUARY 


, 1902. 


Cr. 




CB 


Cash $ 43 


99 


Plate 


61 


J. Fox 


% 9984 


S3 


Plate 


62 


Clovermead 1 9600 


00 


" 


65 


Bills Payable 


1500 


00 




70 


Expense 


' 325 


74 


" 


69 


Production 


2029 


30 




72 


Feed 


364 


71 














74 


Implements 754 


00 














78 


Wise 138 


60 














80 


Labor 83 


25 














82 


Interest 115 


80 














84 


Taxes 65 


28 














88 


First Nat. Bk.| 2022 


46 














$13513 


83 








$13513 


^ 



85 



HOW TO KBBP FARM ACCOUNTS. 



c^ c^i/n^.^i^^/f^z /^z (^£^^f 



da / 



/oia/^ 



^<£^ 



db > 



dc 



Q_ 



<^^^<^ 7Pt/^^^^</C 



C/cU 



/<y 



90 



Z 



£e. 



c?^ 



■^ 



<7o 



dd 

de" 

df' 



(p^ 



h> 



f 



A^J- 



■^o 



lo. 



o^ 



_^ 



2^ 



h£\: 



21- 



L^ 



^^^^€^<^^^ yh- /fjyfv^ jciyi-'n^' 



Sr^ 



Z2. 



^O a.<^i^ ^f:?,"^ . ^^^^y^a^f ^ ' 



./^W 7i^/Ju.nA /V ic^c.t^-K^ 



J^ SV„ ^a^*i^( ^^tU^^-/^ 



/M^ ^T^^^c-^ /f^y ^^^i^^gy dZt^ /'A-T^ 



ff-^r'--^^^e^<^>^<,-t^^/i..0uC 



ii^-*-i,<^ 



c-futj^f^^-^a^ '^^"^^r, ' '^^^^f^ .{^^*^ ' ^-^ ' "^^"^ 



dg ^' 



dh 



^ 



^A.^u^ 7U/4^ti^hJC 



^/cyo 



:f 



>S-o 



Jj££LZ^. 



TRANSACTIONS FOR FEBRUARY, 1902. 

FEBRUARY i. 



Cash on hand $43.99. 



FEBRUx\RY 2. 



He gives Ed. Wise check for $10.00. He has the shoes sharpened and reset 
on Jack and Jim for which he pays $1.40 in cash. 

First. — Wise charged with check (Plate 49, item ca). See 178. 
Second. — Bank credited for this check (Plate 48. item db). 
Refer to 213. 

Third. — Shoeing is Expense and paid in cash (Plate 48, item 
cb). Refer to 163. 

FEBRUARY 7. 

He buys a Bob Sled, $15.00, also buys a ton each of Bran, $21.00, and Middlings, 
$24.00, giving check for same. The Bank gives him his cancelled checks for 
January. 

99. First. — Bob Sled charged to Implements (Plate 49, item 
cc). Refer to 173. 

Second. — Bran and Middlings charged to Feed (Plate 49, item 
cd). See 168. 

Third. — Bank is credited for both checks No. 7 and No. 8 — 
given in payment for the Bob Sled and the Feed (Plate 48, items 
dc and dd). See 213. 

86 



HOJV TO KEEP FARM ACCOUNTS. 




cJJmjui^^ -/^(P 'V 



^ 




'W?v. 



ca y- 

cc 7 

cd n 



V- 



lAX. 



St 



t£,-<.'<^ 



<=K^C, 



/o 



^ 






-2^ 



i^ 



^ 



7^ 



/^O 



Z2: 



^ 



^jc^.-^ 



/^a,-*^^ //fev -2./ £.' 



Vj- 



Oo 



MuOCiLp^. 



//^ >4^€_'' 



A 




C^^^yr^^^-<^0^ ^'/?^/o e^'Cs 



ql 



2^ 



hs-- 



ciUJL 



L^ 



tTT'Xyt^f*^..''*^ . y^r2*i,r\. J^^jyl-^ui^ YiP ^^*~^ 



33 i 



7^, 



"^ty^^"^"'-^' 



(^/'x'^ 



ode 



eg ^' 






^ 



^ti^UL^ 



c2(?o^ ^J<j^ ^/»to< &/j.'<:^ 



2S 



te/^C^c-t.-<S^^^ 



>^i 



^ J> 



:'^ 



J^/ALtU 



About Cancelled Checks, see remarks after Plates 88 and 89. 

FEBRUARY lo. 

4J/2 bushels Clover Seed costs $6.50 a bushel. 

100. First.— Expense (plate 49, item ce). Refer to 162. 
Second. — Credit the Bank for amount of check (Plate 48, item 

da). See 213. 

FEBRUARY 15. 
He has long wanted the 40 acres originally a part of Clovermead Farm, and 
buys it for $82.50 an acre. The First National Bank loans him the money at 
5% on ten years' time, agreeing to accept payment of the whole or any part 
of principal on any interest day after five years. He secures the Bank by 
mortgage. 

101. Charge Clovermead Farm with the amount of the mort- 
gage given to the Bank (Plate 49, item cf). Refer to 117 and ]19. 

Second. — Credit Bills Payable for the mortgage (Plate 48, 
item df). See 139. 

FEBRUARY 27. 
He pays for 2,000 four-inch tile at $12.50 a thousand. Check No. 10. 

103. First.— Expense (Plate 49, item eg). See 161 and 162. 
Second. — Credit Bank for check No. 10 (Plate 48, item dg). 
Refer to 213. 

FEBRUARY 28. 

Cash balance amounts to $42.59. 

87 



HOW TO KEEP FARM ACCOUNTS. 





Dr. 


TRIAL 


BALANCE 


, FEBRUARY, 1902. 


Cr. 






CB 


Cash 


$ 42 


59 


Plate 


61 


1 
J. Fox 


$ 9984 


53 


Pla 


te 62 


Clovermead 


12900 


00 


" 


65 


Bills Payable 


4800 


00 


' 


70 


Expense 


381 


39 


" 


69 


Production 


2029 


30 


< 


72 


Feed 


409 


71 














74 


Implements 


769 
1 


00 












' 


78 


E. Wise 


148 


60 












' 


80 


Labor 


83 


25 












' 


82 


Interest 


115 


80 










■ 


' 


84 


Taxes 


65 


28 










( 


88 


First Nat. Bk. 


1898 


21 










1 


I$i68i3 


83 


1 1 I$i68i3l83 



Transactions for March, 1902 



HOM/ TO KEEP FARM ACCOUNTS. 



cA /7ldA^X /f^> (J^ (^a^J'>- 



/S<^a, 



da ^ 



'iZ^yt-c^ 



^7^. 



:^ 



db -y 



££_ 



<:^^^-i^ ^i^Pt/Z^x^^C 



Cfi^ 



:l. 



oo 



dc ^ /^ 



<^<^ , 



A yv 



±_{^ 



dd >^ :fj 



r^^ 



X3 



^7 



de_^y 



^ 



^^^;^ ; ^^^. /^^t^ ^^^g^oT^ 



.IZ 



dg 



<{^ / # >^ y ^^<^.^^^<^ jiL •^ Z.fc^ tf^iryt^^ 



!? 



<^<? 



^£^ 



^ 



TRANSACTIONS FOR MARCH, 1902. 

MARCH I. 
Cash on hand $42.59. The Bank sends him his cancelled checks for February. 

MARCH 2. 
He gives Ed. Wise check for $20.00. 

First. — Charge or debit Wise (Plate 53, item ca). See 178. 
Second. — Credit the Bank for the check (Plate 52, item db). 

See 213. 

MARCH g. 

He buys a pair of rubber boots for himself, $4.50, and gives check for same. 

First. — Debit or charge Fox for the amount of check (Plate 53, 
item cb). See 110. 

Second.— Credit Bank (Plate 52, item dc). See 213. 

MARCH 20. 
1,000 feet of Lumber cost $27.00, and he gives check for it. 

103. First.— Expense is debited (Plate 53, item cc). See 162. 
Second.— Bank credited (Plate 52, item dd). Refer to 213. 

MARCH 31. 

104. It is the last day of the year, and, wishing to close the 
Ledger, he gives Ed. Wise credit for eleven months' labor, as per 
contract, at $300.00 a year, and also credits himself with what he 
thinks is a fair valuation for his services (|600.00) for the year. 
He also takes an inventory and balances his cash for the month. 
Cash on hand, $42.59. 

105. If we have a man hired by the year, we open an ac- 
count with him, and charge him for the money we pay him from 
time to time. Then, at the end of the year we credit him with his 
wages for the year, and charge it to labor. 

90 



HOW TO KEEP FARM ACCOUNTS. 



S3 



TTI^A^Z /^^ > ^^^^ 



^^ 



-y 



ca 
cb 



7£ 



'^:^2^ 



o^a^ccyf^ 



cy(^// 



^, 



X 



<^. 



.^^fex 



(J^uc^^-^Uy- t^zrif^o 



J^t:. 



¥rc 



J^ 



7A^/iey>u2je A^i90 /r^t/u^yyt^t^^^ /, /J 



7- 



7 



cd ^/ 



.£^ 



,,,/a!-^7rY ^f^<.^ue // Moa'^a4'^ ^'^^^ 



^7^ ^ 



y^CPV (^^)Uy^jCjt^j f 6oo 



cf 



/^^^Z.<.<^j^ 



^2- 



5-^ 



^^ 



=^ 



Fox, wishing to close his books, now credits Wise for 
the 11 months wages (Plate 52, item de) and also credits himself 
for what he thinks the farmstead should pay him (Plate 52, iteiu 
df). The amount credited to Wise (|2T5.00) and himself (|600.00) 
should now be debited to Labor, and this he does (Plate 53, item 
cd). Refer to 180 and 111, also 184. 



Dr. 



TRIAL BALANCE, MARCH, 1902. 



Cr. 



|CB 

Plate I 62 
70 
72 

74 
80 
82 

84 



Cash 

Clovermead 

Expense 

Feed 

Implements 

Labor 

Interest 

Taxes 

First Nat. Bk 



$ 42I59 
I 
12900I00 

I 
408I39 

I 
409I71 

I 
769I00 

I 
958125 

i 
115I80 

I 
65I28 

I 
1846171 



I$i75i5|73 



Plate I 61 

I 
I 
65 

! 69 

I 

" 1 79 



J. Fox 

Bills Payable 
Production 
Ed. Wise 



$10580:03 

I 
I 
4800I00 

I 
2029I30 

1 
106I40 



I$I75I5!73 



105>4. The Cash Book now posted for the year, the Trial 
Balance is as given above. The books are in balance, and his 
cash on hand is |42.o9, which will be the first entry on his cash 
account for April, when he begins his new Ledger for the coming 
year. For further instructions on what to do at the end of the 
year, refer to the Chapter on "The End of the Year," which im- 
mediately folows the Ledger accounts. 

91 



Part Six 

THE LEDGER 



HOW TO KEEP FARM ACCOUNTS. 



^Jr. 




y y 



c^;^ 



C<:^S^? <^^ 



^& 



/^^/ 



^:^y 



^ 



Z£: 



zs- 



<^7 



^o 



A^/^ 



/^ 



^^ ^ 



^ 



ife 



T-J- 



(y^^ccfp-^^ 



J3 



^ 



Alo 



JL 



ho__ 



^/ 



^<f X ^ 



/S 



I^Uc ^ Jly"- c^ ^ ^7 



^/ 



-^ 



2v2 



^^^^ ^^ 



^ 



4^/ 



/^ 



/f^> 



J^ 



l>- 



O'r 



^s 



3. 



9hMAy 



^ 



// ^ 



,r^ 



^ 



.5^ 



^/ 



^ 



■^7.>^aJ'^ 



■^ 



/X-70S 



o 



/l.<9^a 



u. 



THE PKOPKIETORS ACC^OUNT. 

106. This account represents the owners interest in the 
farm. It shows the amount of his investment in the beginning, 
the additional investments he makes and what he withdraws. It 
also shows at the time of closing how much he has gained or lost 
and his net capital or net insolvency. 

107. This is true whether there be but one proprietor or sev- 
eral, but when two or more persons unite in conducting a busi- 
ness it is called a partnership. In cases of partnership, an ac- 
count is opened with each of the partners, and each of them 
credited for what he puts into the business and debited for what 
he withdraws. 

108. Usually, if one proprietor, or several, two accounts 
are opened with each. One showing the investment and the other 
(private account) showing what he draws for personal use and 
his salary, if any. But for ordinary farm purposes two acounts' 
are not necessary-. In this set the proprietor's account includes 
his personal account as well, and at the end of the year, he is 
credited with the salary to which he thinks he is entitled and the 
net gain. If a partnership, each partner's account would be kept 
in the same manner — the division of the net gain or net loss 

94 







HOW TO KEEP FARM ACCOUNTS. 








(^/ ^/ )WH^ U^X 


^ 


/^OJ 




1 1=^ 1 








~~^ 


^y 


/ 


y%yialh^uWf^ ( ^^t^ruA^i^rx,) 


f 


/^Z^ 


3/ 




/^oy 














?h4i^ 


3/ 


(iTirTn^cca OTLc^^a^^l^ 


<r\ 


Oo o 


oo 




II 


3/ 


7UJ~^/a.-C'y\j 


fo 


2VJl^ 


^7 








1 










































































r 












f/ 


<3^6^ S'r 




/^oi- 














m 


/ 


0V,. (^uuij^ fVa-r^ 




/2-7c^ 


v>o 





(li\ ided pro-rata or as agreed upon when the agreement or partner- 
ship was entered into. This account Is debited and credited as 

follows: 



DEBIT. 


CREDIT. 


109. For all the capital he 


112. For his net invest- 


withdraws from the business. 


ment at the beginning of busi- 


110. For all cash he may 


ness which is found by deduct- 


draw or products he takes 


ing the sum total of his Liabil- 


from time to time, for his per- 


ities from the sum total of his 


sonal use. 


Resources. 


Ill, For his net loss as 


113. P^or all additional in- 


shown by the Loss and Gain 


vestments. 


account at the end of the year. 


114. For salary allowed, if 




any. 




115. For his net gain as 




shown by the Loss and Gain 




account at the end of the year. 



TO CLOSE THIS ACCOUNT AT THE END OF THE YEAR, 

116. After all the accounts in the Ledger showing losses 
and gains have been closed into the Loss and Gain account — debit 

95 



HOW TO KEEP FARM ACCOUNTS. 



or credit this account for the net loss or net gain, as shown by the 
Loss and Gain account. Now, find the difference between the two 
sides. If the credit side is the larj^er, write on the debit side in 
red ink ''To Balance" and the amount of the difference which will 
make the account balance. Then, rule the closing lines with red 
ink and enter in black ink the total amounts between them. 
After which, write on the credit side just below the closing linee 
in black ink the date beginning the new year, and the amount of 
the difference between the sides of the account which is the 
Present Worth. 

Refer to Plate 61 and 62 and you will see that the net gain 
of Fox is $2,123.57 which we credit to him, and then, to balance 
the account we write in red ink on the debit side the difference 
between the sides, i e: |12,703.60 and the words "To Balance." 
We then rule the closing lines and bring down on the credit side 
in black ink the date and the amount, |12,703.60 — which is hiSi. 
"Present Worth" at this time. 



96 



HOW TO KBBP FARM ACCOUNTS. 



c/jT U&r^A/^x^^ ^aA^f^ny o^^J^tTT^'y^ 



jm. 



jljiL 



vt;in''y>i.o^aip( J9uf^yiitcry^ 



S- 



^^<!fO 



//^^ 



M. 



!£. 



"^r^^i^ no ^'JKjn^yi^>-t<^ C/ii^Ti't^-H^Kj~ 



i^ 



T 



J3i 



/^.^oo 



J.^a2: 



dfL 



K^ ^^A 



a.^t^L.c^c^ 



/2^ 



OS. 



THE FARMSTEAD. 

117. This account is in some respects equivalent to the 
capital stock account of a corporation. The proprietors account 
represents the owner's interest in the business, and this, the busi- 
ness itself. The principal difference is, that this account continues 
to stand untouched from year to year unless we add more acreage 
to the farm or sell from it a part. Therefore, the farmstead ac- 
count should be debited and credited as follows: 



DEBIT. 


CREDIT. 


118. At the beginning for 


120. 


For what 


we 


sell 


what it costs us. 


from it. 








119. For all additional 










land which we buy to include 










in its acreage. 











REAL ESTATE. 

121. Perhaps you may own other farms beside the one you 
work, or it may be property in towm. You rent them and wanting 
to know what they pay you on the investment, you open an account 
with each. In such cases it is best to enter them by name, such as 

98 







HOW TO KEEP FARM ACCOUNTS. 








(Mat/ (^3 CJ^^Tna-fKc^ (^Wt^j^z/ C^ 


f^o% 












— 


* 'p\A^ 


^1 


Pu. dhun/i^^nny, ^ 




/T^oo 


oo 








^^^^ 














^„^^^ 














^^^^ 




r 










^^^^ 


' /O^^oo 


Oo 





"Beechwood Farm" or the "Brown Property." Debit and credit 
as follows: 



DEBIT. 


CREDIT. 


122. 


When books are open- 


126. 


For all rentals. 




ed for 


value. 


127. 


For the amount 


it 


123. 


For all improve- 


brings 


if you sell it. 




ment. 










124. 


For all taxes. 








125. 


For all insurance. 









AT THE END OF THE YEAR. 

128. To close; write on the credit side, in red ink, "By 
Inventory" for the amount of valuation. The amount the credit 
side exceeds the debit is the gain, and next, write on the debit side, 
in red ink, "To Loss and Gain" for aniount of the gain. Rule 
the closing lines and enter the totals between them. Next, write 
in black ink under the closing lines on the debit side "To In- 
ventory" and the amount of valuation. Carrying the amount of 
gain to the debit side of "Loss" "Gain" account, writing in black 
ink, "By Beechwood Farm" and amount gained. 

In case the debit side exceeds the credit it will be a loss, and 
in that case the entries are similar to those closing any account 
showing a loss as explained under the various accounts in the 
illustration. 



99 



:u 



HOW TO KEEP FARM ACCOUNTS. 



BUILDING AND IMPKOVEMENTS. 

129. "The rule of law is, and for centuries has been, that 
whosoever owns land owns all there is above it and all there is 
below it. Naturally then, when buyiing or selling farms allj 
buildings and everything fairly belonging to them go with the 
farm. In general, whatever the owner of the farm fastens to the 
ground or to a building is a fixture and he sells it when he sells 
the farm." — Parson's Laws of Business. 

Therefore, after a farm is improved, having good fences, is 
well tiled, and with satisfactory buildings, the small annual ex- 
penditures to maintain the farmstead might as well be charged to 
"Expense" unless there is some specific reason for doing other- 
wise. 

But if your farm' is unimproved and a new house, barn, fences 
and tiling is needed or anticipated, an account should be opened 
for "Building and Improvements" and all money paid for such 
items should be charged to it. Then at the end of the year when 
the books are closed this account should be credited "By In- 
ventory" for the sum total of the debit side of the account, less 
a certain percentage, say ten, which should be charged to the 
"Loss and Gain" account each year for depreciation. By doing 
this the first cost of building and improvements, which, of course, 
will constantly depreciate, is distributed equally for a period of 
years. 

If Fox, in the illustration given herein, had had a '"Building 
and Improvements" account, the proper entry for the Stock Scales 
he bought July 22d (Plate 21. item cb) would have been to charge 
them to that account instead of "Expense," but as his farm is im- 
proved, it is better in such cases to call items a loss at once than to 
open an account on purpose for them. However, this is a matter 
of opinion, and the disposition of such items must be decided by 
the owner of the farm'. 

When you have a "Building and Improvements" account you 
should debit and credit as follows: 

100 



HOW TO KEEP FARM ACCOUNTS. 



DEBIT. 


CREDIT. 


130. For the value of the 


133. At the end of the 


buildings and improvements 


year "By Inventory" for the 


as shown by the inventory. 


sum total of the debit side less 


131, For the cost of any 


a certain percentage, say ten, 


buildings or improvements we 


for annual depreciation. 


may build or put in during the 


134. By Loss and Gain for 


year. 


the difference between the 


132. For all repairs we 


sides. (See below.) 


have made on buildings. 





AT THE END OF THE YEAR. 

135. To close this account: After having decided what 
per cent, of depreciation you are going to charge annually for 
"wear and tear" or having estimated their present value, write 
on the credit side in red ink "By Inventory" and the amount. 

Now find the difference between the sides, and the amount 
the debit exceeds the credit side will be a loss which enter on 
the credit side in red ink "By Loss and Gain" and the amount 
of difference which will make the account balance. 

Rule the closing lines and enter the totals between them in 
black ink. 

Next, write on the debit side below the closing lines, in black 
ink, "To Inventory" and bring down the amount credited when 
the account was closed. 

Now, carry the amount lost over to the "Loss and Gain" ac- 
count, writing on the debit side of that account in black ink 
"To Building and Improvements" for the amount lost. 



101 



HOW TO KBBP FARM ACCOUNTS. 



oJt /dM C^aM <^a^^^ 


/^oy 












■"■ 


* ^M^ 


V 


%oT£ do>^ 'Ma-^ 


<r 


c^^O 


=»«? 






3/ 


% /^ajayn^j^ 




^S-oa 


OO 








^^^-^^ 














^^---^ 




r 










^.--^^^ 


Xs^oo 


oo 





BILLS PAYABLE. 

136. This is an account of the notes we give to others, 
hence Bills Payable, because we have to pay them. Whenever 
we give a note we credit Bills Payable, and when we pay that note, 
we debit Bills Payable. Prom this you will understand that the 
difference between the two sides of this account should at all 
times agree with the amount of notes we owe. Therefore: 



DEBIT. 


CREDIT. 


137. When we pay any 


138. At the commence- 


note or notes we owe. 


ment of business with all the 




notes we owe. 




139. For all notes we give 




to other parties, made by us 




payable to thejji. 



AT THE END OF THE YEAR. 

140. In closing this account at the end of the year, find 
the difference between the sides and then write on the debit side, 
in red ink, "To Balance" for the difference which will make the 
account balance. Rule the closing lines and enter in black ink 
the total amount between them. Next write on the credit side 
below the closing lines "By Balance" in black ink for the differ- 
ence between the sides of the account which should exactly agree 
with the amount of notes we owe. (See Plates 64 and 65.) 

This account is never closed unless it balances or it is nec- 
essary to forward to a new page. As the farmer will find it best 

102 



HOW TO KEEP FARM ACCOUNTS. 



^f 



Ua^ay^€e. 



'^j wa^ 



/^o/ 



4^ 



Jkcyf- M/Si^lyTiJC 9}Uyfaa^je 



f 



7^. 



oo ao 



l<^0^ 



%(r 



/S 



J-AA^ ?b(-f /^gyn^i. Thfirt^a^je 



-^ 



-\' 



^3c 



S3< 



/fOV" 



41 



u 



1. 



Ciyyvce^ 



^ro. 



to have a new Ledger each year this account is closed as above 
at the end of the year. 

When transferring the balance to the new Ledger, be sure 
you enter the balance on the credit side. In transferring any 
account enter the balance on the side of the new account upon 
which it was brought down on the old. 

141. WHEN YOU PAY YOUR NOTES SECURED BY 
MORTGAGE. — The notes Fox has given to the First National 
Bank are secured by mortgage. When paying notes thus secured, 
as he did January 2nd, (See Plate 64) he doesn't destroy them when 
paid, but keeps them until all are taken up, for it is absolutely 
necessary they be kept until the mortgage is discharged. 

142. TIME OR SIGHT DRAFTS.— These are, technically 
speaking, "Bills Payable" and you will not under ordinary cir- 
cumstances have much to do with drafts, but if a draft should be 
made on you for one, three or five days sight and you accept it — 
when paid charge the person making it as it is a cash transaction. 
For instance: If you write Clay Robinson & Co. to send you a 
car load of "feeders" or "stockers," charge the amount of their 
draft on you to your Production or Live Stock account, writing in 
the explanation column of your Cash Book the details of the 
transaction. 



103 





HOW TO KEEP FARM ACCOUNTS. 








^ ^/M /fce^ (^i;^U 




Mo/ 












'm 


/ lH^/m-t< 7(/y(t- dtu V/JVo' Mm-i'/t 


-^ 


-^^ 


Oo 


^ 



BILLS RECEIVABLE. 

143. If you loan money or sell any of your farm products 
taking a note for the amount, it is receivable by you, and con- 
sequently must be debited to Bills Receivable, You take notes 
for two reasons: In case of legal proceedings you do not have to 
prove the account, or if needing monej^ you can have them dis- 
counted at your bank. In the beginning 



DEBIT. 


CREDIT. 


144, For all notes you 


147. When any of the 


have on hand payable to you. 


notes you hold are paid. 


145. For all notes you get 


148. For all notes you 


from others made or accepted 


have discounted or sell. 


in your favor. 


149. For all notes you en- 


146. For all notes made 


dorse over to other parties. 


payable to others and trans- 




ferred by them to you. 





AT THE END OF THE YEAR. 

150. This account like Bills Payable, is never closed in 
actual business unless it balances or it is necessary to forward 
to a new page. On the farm it is advisable to open a new Ledger 
each year, therefore, the account is closed at the end of the year 
as follows: 

Find the difference between the sides and write on the credit 
side "By Balance" for this difference which will make it balance. 
Then rule the closing lines and enter the total amounts between 
them. Next write on the debit side beneath the closing lines in 
black ink "To Balance" for the amount of the difference which 

104 



HOW TO KEEP FARM ACCOUNTS. 



(lU ^7 r^M (^.Ue^(.^zM 


^ 


/fo/ 












' 


4^ 


1^ 


{(HOrM-ti 


V-o 


—^ 


oo 





should exactly agree with the amount of notes you have on hand. 
In transferring this balance to a new page or a new Ledger it must 
always be entered on the same side — the debit. 

151, If the maker of a note cannot pay it in full when due, 
but makes a part payment, credit "Bills Receivable" for what 
he pays and endorse on the back of the note the amount received. 

152, If he wants to renew it, simply debit "Bills Receivable" 
for the new note you get and credit "Bills Receivable" for the old 
note you surrender to him. 

153, When you discount a note — credit "Bills Payable" for 
the face of the note and charge the discount deducted by the bank 
to "Interest." 

154, Notes are always debited or credited at face value. 



105 



HOW TO KEBP FARM ACCOUNTS. 



^ OTirdAA-d:in^ (7/citr6^ 


^^0( 




Q 








~~~ 


m 


1 


^%H^c6mi 


f 


/j^ji' 


^rf 


• 


(kh^ 


V 


(/^Ou^y^ ^tc^r^u^iL 


n 


/cT 


00 




ff 






1 








Moi^ 














'^ %yiA. 


Si 


^aOhH^ r^/zlA^rXj 


f^ 


¥o¥3 


ro 










/ ^ 












y 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 




f 










/ 




sy<s-Q 


fvT 




/4o> 


■ 










— ~ 


^J 


/ 


c/0 ^Tt^AC^yot^T^^^ 




2.0/^ 


2-0 





PRODUCTION. 

155. As simplicity in the first essential in account keeping 
on the farm, after accuracy, it is necessary to lessen the number 
of accounts opened in the Ledger as far as practicable. The 
merchant credits his "Merchandise'' account for the amount of 
his sales, the manufacturer credits them to "Manufacturing." The 
farmer can be likened to the manufacturer because he is a pro- 
ducer and either grows or finishes the products of his farm. The 
most comprehensive title for his sales is "Production." It isn't 
a simple matter to keep an account with each field. Much guess- 
ing or weighing must be done to do this, and the details soon grow 
irksome with no practical results at the end of the year to show 
for the extra work required. In the end it all goes into the Pro- 
duction account anyway, so there's mighty little argument to 
present for separate accounts with the different products and kinds 
of stock. But the simplicity of crediting all sales to Production 

106 



HOW TO KBBP FARM ACCOUNTS. 



(Ma^Oi^ C^7yKXy(JZoff7x^ 



M£L 



al^iifXffTTu 



£(iL 



f. 



/j~.? 



#- 



r 



/>- 



^iMvu y 



<:^/ft^-^ ./jhx^ c^^oAj- 



Z4 



/S'/o 



t 



IV^HfJ / 



Z4 



//& 



^c 



>l^ 






/C 



^^^ 



^ 



Jk^ 



-^ 



>^ 



(^^o 



dcv 



lA 



^^^ 



J'v^ 



^^f 



yi= 



>j- 



(yi^-^a^t-a-eo 



^v 



6-3 



in: 



v^f^- 



/s- 



Oo 



Tio 



kl 



^ 



oQyi^>v4<7' 



JC 



63 i 



63 



>o 



//hy. 



I/O 



3(^ 



J'^i 



7^ 



^ 



&n^7^ 



JC 



^(^o 



Ak^ 



^ 



ji^£. 



Yo 



3aVy 



jL 



^a 



^<f,2.f 



/^'py 



^^/ ^^"T^irc-H^t^Prr^ 



9^0^ 



3/ 



SyQ/^ -> 



S^AS^ ^S- 



is clear to every one. (See paragraph 48 for further remarks re- 
lating to this subject.) 

In beginning,, all live-stock and products are charged to this 
account. At the end of the year it is credited with what is on 
hand, the difference between the two sides showing the sales for 
the year. Then this difference carried to the Loss and Gain ac- 
count is opposite the items showing the expenses of operating the 
farm and the difference between them shows the net results of the 
gain or loss of the farmstead's management for the year. This is 
the practical side of farm accounting, therefore, we debit and 
credit the Production account as follows: 



DEBIT. 


CREDIT. 


156. In the beginning for 


158. For everything sold 


all grain, hay and live-stock of 


we raise on the farm. 


every kind we have on hand 


159. For all live-stock sold 


at the market price of each. 


either grown or bought to feed 


157. For all live-stock we 


and fatten. 


buy during the year. 





107 



HOW TO KBBP FARM ACCOUNTS. 



AT THE END OF THE YEAK. 

160. To close this account: We write on tlie credit side, 
in red ink, the amount of all stock and produce we have on hand 
as shown bj the inventory. Then find the difference between the 
two sides, and the amount the credit side exceeds the debit will 
be the gain or amount of sales for the year. Next write on the 
debit side, in red ink, "To Loss and Gain" for amount gained or 
difference between the sides which makes the account balance. 
Now, rule the closing lines and enter the total amounts be- 
tween them, after which write on the debit side below the closing 
lines, the date, "To Inventory" and the amount of the inventory 
all in black ink. (See Plates 68 and 69 as an example.) 

After closing the account as above, the amount gained (in the 
example given |4,043.50) is carried to the credit side of the Loss 
and Gain account (See Plate 91) writing on the credit side of that 
account, in black ink, "By Production" and the amount gained. 



108 



HOW TO KEEP FARM ACCOUNTS. 



^ 




'U4UU 



M 



01 



M^t 



jl 



S 



ih*n^ 



Mh- 



A 



'^:ij2. 



2^ 



X 



Xo 



2iv 



ys 



^ 



idHifCyf^o^tatd^ 



K^/ta^A 



j^tM 






/JTHfi- 



eV/fX/H-iiAAjL^ 



^^L.^OlHA^>(-'(2AyT^ 



^(Uolt^ 



^kAjta-'^ccy}^^ 



(^^^^7. 



/3 



/3 



/3 



^ 



:iZ 



2U. 



>X 



/& 



>S 



H^c 



3 



LLiL 



&s 



2± 



/o 



/o 



>/ 



^IoaJLi 



>y 



^ 



Afu- 



s 



^jf/g-AiU^ 



JUv 



U 



^Joo 



p- 



A^WTrnt-.u- 



H 



3 



Go 



11. 



^^AjL(y.U- 



^ 



^ 



>s:^ 



-yo 



Ji^7-Kiy0u^ ^^h-'^t^ 



2^ 



££o 



^no^ 



^3 



^^Ucdytt^ r^^^iAjL^afj. 



jLY^ 



% 



S~o 



Mc 



l± 



LL 



<2yn..^?~C<^.-r^-^ 



C7H4^L^Al^ 



^/ 



if^: 



£.Z 



^ 



£>V 



^jjt 



V 



^^0-^i-»t-^ 



^ 



/ 



^ 



/o 



(^/nVlAy ch^L^ 



^ 



i:^U.. 



n 



^ 



^ 



AT^ 



2lLi^ 



^o 



oUCyyp^-^O-i^r- 



oTcJ 



:i" 



>■ 



^OF 



EXPENSE. 

161, No business can be conducted without some expense, 
and in keeping the farmstead up to the highest plane of its earn- 
ing capacity there are numerous items which must be charged to 
this account during the year. As a general rule all items are a 
loss which go into general improvements or that cannot be in- 
ventoried at the end of the year, and should be charged to this ac- 
count, therefore, we debit and credit it as follows: 



110 







HOW TO KBBP FARM ACCOUNTS. 








^^^/ ^filyHM C^ 


/^ov 














''Pm 


Bl 


/2^/e(%^ t^/aMr\. 


^a 


^<f 


^i 








f 1 


1 




^^ 




























































































/ 














/ 














/ 














/ 














/ 














/ 














/ 




























/ 














/ 














/ 














/ 














/ 




^ 










/ 




Vo^ 


H 






J 1 II — • 



DEBIT. 



162. For everything we 
buy to use on the farm and 
not to sell again such as sta- 
tionery, lumber, nails, fertil- 
izers, seed, tile, etc., etc. 

163. For all we pay out for 
freight, express charges, horse 
shoeing, threshing, etc., etc. 



CREDIT. 



164, For anything we sell 
which has been debited to this 
account. 



Ill 



HOW TO KEEP FARM ACCOUNTS. 



AT THE END OF THE YEAR. 

165. In closing this account find the difference between the 
sides, if anything has been credited, if not, write on the credit 
side, in red ink, ''By Loss and Gain" and the amount to make the 
account balance. Now, rule the closing lines and enter the 
amountt in black ink between them. Next, write on the debit 
side of the Loss and Gain account "To Expense" for the amount 
of loss. For an example refer to Plate 70 and 71 and look up 
the Loss and Gain account (Plates 90 and 91). 



112 



HOH^ TO KEEP FARM ACCOUNTS. 



cJy< 



^Zhdy 



cy/aA7->^ 



M2L 



^ypmif^. 



j^L 



'^rr^ 



4- 



2:lLtL 



Md4. 



A 



7?vi<^^/i^<^ rdk/4^ 



AL 



^' 



ro 



M, 



2L 






2LL 



3 >o 



j2iu 



7^ 



>J' 



/.9S 



c/i 



/iM 



F 



'T^tc^c^fx/yi^ 



li^ 



2± 



^A 



t^o 



jW. 



/J- 



(E^r^y 



^ 



yj^c 



^JU^ 



Jl. 



6UiL 



-4^/ 



^ 



/jQy 



AL 



T^t^^/^i^-^ T'/^-ynyt^^ 



^c 



%■ 



^S 'c 



^O 



^u 



/<:^o-y 



^ 



c7a 



^p7U^-€y**Xj/t-r^ 



'^ to 



FEED. 

166. This could be included in the Expense account, but as 
most stockmen and farmers will want to know bow much thej 
pay out for feed during the year it is best that an account be 
opened with it. 



DEBIT. 


CREDIT- 


167. For all feed on hand 
at the commencement as 
►shown by the inventory. 

168. For all that we buy 
during the year. 


169. For any feed we sell 
which had been previously 
charged to this account. 



114 







HOW TO KEEP FARM ACCOUNTS. 








(M V J^^ ^ 


Mo> 










1 


""* 


/%fj/ 


3/ 


d^ ^HVS5fC^^7V 




7¥/o\ 




* ., 


^/ 


^ ^^Sa^ r-^^MA^t^ 


fo 


JJ^ 


^/ 






















^ 














^ 














^ 














^ 














^ 














^ 


L 














\¥o^ 


1' 





AT THE END OF THE YEAR. 

170. To close this account at the end of the year, write oh 
the credit side, in red ink, "By Inventory" for the value of the 
feed we have on hand. Find the difference between the two 
sides and write on the credit side, in red ink, "By Loss and Gain*' 
for that difference, which will make the account balance. Rule 
the closing- lines and write between them in black ink the totals. 
Next bring down the amount of inventory in black ink on the 
debit side, writing the date and "To Inventory." Then enter on 
the debit side of the "Loss and Gain" account "To Feed" for 
the amount of I^ss on this account. (See Plates 72 and 73 and 
refer to Plate 90. 



115 



HOW TO KEEP FARM ACCOUNTS. 



^^y%^mm.g.^HyC^ 



(^Z^7^ 



/^ai 



^?2t(^^'nyG~rlyf 



^ 



/ 



^ 



^^ 



oo 



-^ 



Jo 



C^jir<:^/U£^ c^^^u-iityio;^^ 7^^i-^>^^yrU 



/d. 



/S'oc 



M 



oy 



JU 



X 



/aH!c<^^ 



^c 



t 



;f^ 



/</"sto 



2A 



g 



o_a 



■4 



V? V 



^ 



g/^ ^Pvt^^<-»^yUr-yy. , 



^ 



^ 



IMPLEMENTS. 

1*^1. Implements on the farm are the same as the tool* 
and appliances of the manufacturer. They are a visible asset 
and their worth depends greatly on the care taken of them. 
It is customary among manufacturers to deduct from their in- 
ventory of machinery a certain per cent, for "wear and tear." 
This of course depends on its condition and also whether it is of 
a style and pattern not superceded by one later and much more 
desirable. But the per cent, deducted for depreciation must be 
decided by the farmer himself. No hard and fast rules can be 
laid down for that. This account is debited and credited as fol- 
lows: 



DEBIT. 


CREDIT. 


173. For the amount on 


174. For all that we sell. 


hand as shown by the inven- 


175. For amount on hand 


tory at the beginning of busi- 


as shown by inventory at the 


ness. 


end of the year. 


173, For all we buy dur- 




ing the year. 





116 



HOW TO KEEP FARM ACCOUNTS. 



I 



f 



^V7t^4JU/prw>Ct4 



i^ 



*/^ 



CO^/ ?7u/<€Ai^(in^^ 



'Jtw^ 



^ 



^ 



'A 



31. 



z;^/.^?^ r-^. 



''yiX.^^,^ 



^ 



J^C. 



2k^ 



AT THE END OF THE YEAR 

176. To close this account at the end of the year: Same 
as the Feed account which immediately precedes this. See plates 
74 and 75 and compare amount carried forward to Loss and 
Gain, Plate 90. 



117 



HOW TO KEEP FARM ACCOUNTS. 



Jr 



ddyA 



fyU!^ 



TTyr 



Ml 




^ 



/ 



7^ 



>2 



0££, 



>jr /o 



a<2 



S3 



A2.2a 



!£. 



(yk^fiLtaii^ 



J3 



^22 



JU^ 



£_ 



^ 




f^ 



d^ 



^. 



;^aA 



-^3 



^^ 



^<=>2. 



J$c 



AL 



-J- 



^ 



-K 



^ 



x«? 



»c» 



/^ 



7^ 



(^(S^ 



»£2 



-^O <7 



^/ 



^ /of^iJL.^^^ 



/gC ^ 



is 



^<» 



FARM HELP. 

177. It isn't necessary to open an account with the dif- 
ferent men employed on the farm by the day. That should 
be charged to the Labor Account. But if we hire a man or men 
by the year then a separate account should be opened for each 
and all money paid to them from time to time charged direct 
to them, and the wages allowed each credited to them at the 
end of the year. The example of the Wise account (Plates 78 
and 79) show how an account should be kept when we hire a 
man by the year. Accounts of this nature are debited and cred- 
ited as follows: 



DEBIT. 


CREDIT. 


178. For the amounts we 


180. At the end of the 


pay him from time to time. 


year for amount of wages 


179. For all farm products 


agreed on. 


taken in lieu of cash on ac- 




count during the year. 





118 







HOW TO KEEP FARM ACCOUNTS. 








(^d^^^ ' ^x.^^^:^ (^ 


' / . - - 


/^o-y 














7^u^ 


3/ 


y^^^^^ // 79z^?'?a^ 


-O 


>1S 


Oo 








' 




f 










y 














y 














/ 




























/ 




























y^ 














/ 




f 










y 


- 


%n^ 


oo 




/^o\- 




v^ 




— i — 








/ 


/^6./ /^ifJk-f-^^je ^-^ 




/oG 


^ 





AT THE END OP THE YEAR. 

181. To close, find the difference between the two sides and 
enter on the debit side, in red ink, "To Balance" and the amount 
which will make the account balance. Now, rule the closing 
lines, enter the totals between them and bring down in black 
ink the amount of the difference, entering it on the credit side 
"By Balance" which is the amount due or to his credit at the 
end of the year. (See Plates 78 and 79.) 



119 



HOW TO KEEP FARM ACCOUNTS. 



^^ 



/f^/ 



rjUZ^A 



j^ 



'/Cd^ 



^ 



/cT? 



J^ 



-h-y 



^^^tZ4< V^^. 



/ 



/>- 



Qa 



IL 



^M 



/y^ r-Q 



Jc 



^3 



/^ 



2£ 



Pkr^i^. 



d^i^ r-r^l^i^^ 



a 



^ 



T^S" 



90 



y^o-y 



2^il. 



Cy^^^^K-^A^^ 



J3 



<fir 



i^ 



^ 



\S~8^ 



■2~S 



LABOR. 

183. As previously explained under the account preceding 
this (Farm Help) we open an account for each man employed ob 
the farm by the year, and also a Labor account to which we 
charge all sundry help hired from time to time. 



DEBIT. 


CREDIT. 


183, For all wages paid 
sundry help from time to time 
during the year. 

184. At the end of the 
year for the wages we agree to 
pay the men whom we hire 
by the year and with whom 
we have opened separate ac- 
counts. (See Wise, Plate 79. 
Fox, Plate 61, and Cash Book 
for March, 1902, Plates 52 and 
53, items de, df, and cd. 





120 



HOW TO KEEP FARM ACCOUNTS. 



4irfi -<^^ ^ 


Ma^- 


- 








^^ 


r 


* "ht^ 


3/ 


/^My^^^ r^.OA^^ 


f^ 


^J-<r 


2^;- 




















^ 




























^^ 














^^ 














^^ 




f 






.._., 




n?"^- — 


■ 


'f^f 


7^ 


__ 



AT THE END OF THE YEAR. 



185. To close, enter on the credit side, in red ink "By Loss 
and Gain" and the total amounts paid for Labor as shown by the 

This balances the account. We then 
nter the amounts between them and 
caiT-y the amount entered on the credit side in red ink to the 
debit side of the Loss and Gain account. (See Plates 80, 81 
and 90.) 



footing of the debit side 
rule the closing lines — 



121 



HOW TO KBBP BARM ACCOUNTS. 



^ 



^meAz^<iy^ 



(^a:^ f7^ 



^ 



'o-y 



^ 



>. 



^ 



^^( 



2:: 



/><? 



«^ 



/Z.O 



INTEREST. 

180. If we have interest to pay or hold notes which draw 
interest we must open an account with it. Then it will show 
us at the end of the year what we are paying for the use of money 
borrowed or what our loans are paying us. 



DEBIT. 


CREDIT. 


187. 


For any interest we 


189. For any interest we 


pay. 




receive on notes we hold. 


188. 


For any discount the 




bank deducts from the face 




of notes 


we have discounted. 





122 



HOW TO KEEP FARM ACCOUNTS. 



(A±/3 Jmhaa 



C^ 



JMl 



> V7 » nf ' 



AT 



66hhf-^ 



><j 



¥ 



Z^ 



(3i/^(Htd f^/axJt^x. 



Thjuy J/ 



^ 



//c5' 



to 



/;z-o 



AT THE END OF THE YEAR. 

190. To close this account we find the difference between 
the two sides. If the credit side is larger, we write in red ink 
on the debit side "To Loss and Gain" which is gain on interest. 
If the debit side side be the larger, we write, in red ink on the 
credit side "By Loss and Gain" which is loss on interest. This 
makes the account balance. Now, rule the closing lines and 
enter, if there be a loss, on the debit side of the Loss and Gain 
acocunt the amount lost, or if there be a gain, on the credit side 
of the Loss and Gain account the amount gained. (See Plates 
82, 83 and 90.) 

191. DISCOUNT. — As discount is simply another name for 
interest it is useless to open a separate account for it, but call 
interest and discount the same and debit or credit both to the 
Interest account. 

193. ENTRY TO MAKE OF NOTES YOU HAVE DIS- 
COUNTED. — Sometimes when in need of money we have a note 
discounted at the bank. If you do this, don't forget to credit 
"Bills Receivable" for the full face of the note and debit Interest 
for the discount deducted by the bank. Then, if this amount has 
been placed to your credit in the bank, debit the bank for the 
amount you receive or the proceeds of the note. 



123 



//Off/ TO KBBP FARM ACCOUNTS. 



.^^h. 



omt<f n^. 



c^^ 



i^ 



mt 



ai 



M>y^^ 



>-\ rMr.J^ ~lZ>w>^ 



^ 



(^t^gj^^ ^yC€^^i^i^-Ut^ 



^ 



y 



ci^>^V- 



^y-i W 



^<^:. ir 



TAXES AND INSURANCE. 

193. It is a matter of gratification to know what our Taxes 
and Insurance amount to for the year. All we pay out for either 
should be charged to this account. 



DEBIT. 



194. For all we pay for In- 
smrance or Taxes. 



CREDIT. 



AT THE END OF THE YEAR. 

195. To close, write in red ink, on the credit side the date, 
'*By Loss and Gain" and the amount necessary to make the ac 
count balance. Then rule the closing lines and enter between 
them in black ink the totals of each side. (See Plates 84 and 85.) 
Then carry the amount to the Loss and Gain account, entering it 
on the debit side of that account as shown (Plate 90). 

196. INSURANCE. — Every farmer and stockman is vitally 
interested in Insurance that really insures. And very fortunate 
it is, too, that there is insurance, in such form as to keep him 
in direct touch with it, and his interests mutual with his fellowB. 
Of late, it is almost an impossibility to insure farm property in 
some states in good Stock Companies, but the Farmei^'s Mutual 

124 



HOW TO KBBP FARM ACCOUNTS. 



tm^fJ ^^^j^ t^7'2<ui^j^,i^^^^ C--\^ 



J^ 



■y 



-^-^ xg^<>ac?' C^^jL-^^-^ 



j22k^^ 



^ 



(^s-.is' 



(^<r,>,K 



Cos. are really safer and much more desirable in every respect, 
then, too, the cost is less. Of the 109 Mutual Companies writ 
ing insurance in Ohio in 1899, twenty-five of them made no as- 
sessments and eight had no losses! The average saving of the 
Mutuals in comparison with the Stock Companies has averaged 
33 cents on every .fl.OO of insurance written on the three year- 
term plan. This is a consideration worth taking advantage of 
for "it's the little leaks in business that eat up the profits," 
and it's the little things on the farm that tend to increase them. 
No really good business man neglects to insure, and no farmer 
can afford to carTy the risk of fire himself. Every intelligent 
farmer understands this and should encourage his county o»^ 
ganization. If there was one-half the unity of purpose and well- 
directed effort on the part of the farmers, as a whole, as there 
is among other business men, much that they now desire and 
should have would be their's. Stand by your organization and 
don't be afraid, as the Rural New Yorker says, -"'To use the poet- 
age stamp on your representatives and Congressmen to have laws 
passed and enforced which will help you, and those repealed that 
are not favorable to the best interests of agriculture." 



125 



HOW TO KEEP FARM ACCOUNTS. 



^ 



^C^^^^Qg 



(^a^rc 



MOL 



CKt^ti^ ^4^ /^^-<yXi^&.f.,^^u.^ 



J^ 



V 



ACCOUNTS WITH PERSONS TO WHOM WE SELL PRODUCE. 

197, Th^ farmer usually sells his products for cash. But 
when anything is sold on time, an account should be opened with 
the person sold. Then all products sold him must be charged to 
him and all payments made by him credited to him. This account 
against the C. H. & D. R. R. is equivalent to a pei-sonal account, 
as we have charged the R. R. Co., for the amount of seed corn lost 
while in their hands, and have given them credit for their check 
when it was paid. Accounts of this nature are treated as fol- 
lows: 



DEBIT. 


CREDIT. 


198. For the amount they 


200. For all cash they pay 


owe us when we open our 


us on account. 


books. 


201. For any produce they 


199. For all we sell them 


return on account. 


on account. 


202. For all notes they 




give us in settlement of ac- 




count or to apply on account. 



AT THE END OF THE YEAR. 

203. To close, at the end of the year, or when we want to 
traiiHfer to a new page, find tlie difference between the two sides, 
;!iid if the debit side be the larger, write on the credit side, in 
red ink, ''By Balance'' for the amount of the difference. This 
makes the account balance after which rule the closing lines and 
t'nter between them the totals in black ink carrying the amount 
necessary to make the account balance, forward to the new page 
or to the new Ledger, writing on the debit side in black ink the 
date — "To Balance'' and the amount, writing on the old page 

126 



HOW TO KEEP FARM ACCOUNTS. 



(^f-^ 



J^ 



s: 



X 



yy 



t±. 



/S'/o 



"To" and on the new page or new Ledger "From" which the 
amount was transfered. 

If the credit side is larger then the "shoe is on the other foot," 
and you will write on the debit side in red ink, "To Balance" and 
amount of difference between the sides which will make the ac- 
count balance, rule the closing lines, enter the totals and carry 
forward the amount used to balance to the new page or the new 
ledger writing on the credit side of the new account in black ink, 
the date, "By Balance" and the amount. 

When carrying forward an account to a new page or a new 
Ledger do not forget to write on the old page "To" which and on 
the new page "From" which the account has been transferred. 

ACCOUNTS WITH PERSONS FROM WHOM WE BUY GOODS. 

204. These are practically the same as the accounts we keep 
with persons to whom we sell on account, and we debit and credit 
as follows: 



DEBIT. 


CREDIT. 


205. For all cash we pay 


208. For what we owe 


on account. 


them when we open our books. 


206. For all goods we re- 
turn on account. 


209. I'^or all we buy from 
them from time to time. 


207. For all notes we give 




in full or part payment of ac- 
count. 





AT THE END OF THE YEAR. 
210. These accounts are balanced and carried forwai-d the 
same as explained under the head of "Accounts With Persons To 
Whom We Sell Produce" just preceding this, which see. 



HOW TO KBBP FARM ACCOUNTS. 



Jr 


-^^/^^>t^ /^A^C 


C^^t^j^r^ 




/^O/ 














/Jlo 


-yo 


fi^jL^/L^-Xi^^ 


^ 


XfS-o 


oo 




/^a-y^ 








/ 






J^< 


J^ 


// 


^J- 


/S'/o 




































/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 














/ 




■ 










/ 


^ 


>'jCs- 


/o 




/fe>> 


■ 












M 


/ 


(yv /daAk-H..<jC^ 




/-r-^^ 1' 





FIRST NATIONAL BANK. 
211. It isn't necessary to open an account with your Bank 
in the Ledger. It can be carried along in the Check Book, but 
taking everything in consideration it is preferable to have it in 
the Ledger on the farm. Each check given should be numbered 
(in rotation of course) no matter where you begin, 1 or 300, and 
that number should go in the Cash Book and be posted to the 
Ledger (See Plate 89). Then, when the Bank hands you your 
cancelled checks, compare them with what jou have given out, 
checking each one on the Ledger. You know then, just what 
checks have been presented for payment at the bank. 



DEBIT. 



212. For all currency, 
checks, money-orders or drafts 
we deposit. 



CREDIT. 



213. For all checks we 
make. 



128 



HOW TO KEEP FARM ACCOUNTS. 



cJa^ 7(^^(&n^/ ^M/( C^ 



/^O/ 



Mc^ 



ys 



C^L^^ / 



^ 



c^To 



2.2. 



>J 



> 



^c 



_/££ 



M:^ 



3 



^^ 



^ 0^ O 



•77 



/7- 



>=/ 



'r^^ 



3<=> 



i^ 



J~ 



^<^ 



S^ 



6i£ 



^<f 



/o 



^r 



r 



^^ 



^^. 



4- 



v^ 



2^ 



y^ 



■^ 



/ o 



^i> 



72U2L 



// 



->-o 



JL. 



^ 



/■y- 



J^ 



^o 



-P^o 



/3 



> 



3/ 



/^ ^<^^^- 



/f'^C 



7^ 



2-76 



214. To balance, proceed exactly as you would with an 
account with a person to whom you sell on credit as explained 
under "Accounts With Persons to Whom We Sell Produce" for 
the principles are the same in both. 

215. BANKS — Banks are a convenience the business farmer 
can't afford to ignore. They are, for him, safe places for the 
keeping of money, securities and other valuable paper. The pay- 
ment of his bills, too, is more convenient by check than with cur- 
rency, and the checks when returned by the bank are valuable as. 
receipts. Banks sometimes become insolvent, it is true, but there 
are safe and conservative banks in every county seat, or perhaps 
in a town still nearer to you. Select your banker as you would 
a friend. Be frank with him and never test his generosity by 
allowing your check to be presented for a larger sum than your 
balance. If you do this your relations will be pleasant, and if in 
need of money to move a crop or carry the cattle, sheeD and hogs 
you are feeding to a finish, you can secure it from him at reasonable 
rates, providing, of course, you have proven yourself to be a man 
of character and business ability. Then, too, there are many 

129 



HOW TO KEEP FARM ACCOUNTS. 



"don'ts" in business, and if you have selected your banker, as you 
should, he is the man to go to for advice if in doubt about any 
business transaction. Assuming that you have a bank account, 
and that you have left your bank book with them, as you do once 
a month to have it "writteu-up" when it is returned to you the 
balance shown by it should agree with the balance shown by the 
account you keep with the bank in your Ledger or check book 
unless some of the checks you have given out haven't been pre- 
sented for payment. When your book is handed to you with the 
checks presented for payment during the month, stamped paid, 
compare these cancelled checks with those you've made, and you 
will know just what checks are still out. This is where the im- 
portance of numbering each check is found and Avliy it is best to 
have a bank account in the Ledger intended for farm use. 



130 





HOW TO KEEP FARM ACCOUNTS. 


Jr 


^P'^i^f^ Arzkc-^ ^^^^^"^^ 



m^ 



^^^-^"^^/a 



99UA. 



3/ 



JA^.^^ 



Xl 



_f^^ 



-^ 



c^^-^.^^ . 



^ 



J SJ-^/ 



.^ 



^^<^!/^^x^''^^-^>t^g->^.^?^ 



2^ 



>y 



^^ 



^c 



d±. 



.^^L:dl 



frrr- 



'^J^^ >^ 



^^ 



^^^^y^^^^jC^f^^-cz^/- 



h3 



//J~^o 



.^ 



.-^^A^ t79?7^^ 



^^- 



A^ZJ. 



.i^ 



^ 



^Y 



-J' 



2-/7^3 



J~n 



^o^A3 



ro 



LOSS AND GAIN. 

216. This account is kept to show the final summin<>- up of 
all our losses and gains for the year and is debited and credited 
as follows: 



Debit. 



217. At the end of the 

year for all the accounts upon 
w^hich we have lost during the 
year. 



Credit. 



218. At the end of the 
year for all accounts upon 
which we have gained during 
the year. 



AT THE END OF THE YEAR. 

219. To close: Find the difference between the two sides. 
If the debit side be the larger the amount it exceeds the debit is 
the net gain for the year. If the debit side is the larger, the 
amount it exceeds the credit side is the net loss for the year. Re- 
ferring to the examine (Plates 90 and 91), the credit is the larger, 
so we enter the amount it exceeds the debit side, in red ink, on 
the debit side, the date, and "To J. Fox," after which rule the 
closing lines and enter between them, in black ink, the total foot- 
ings. The amount the credit side exceeds the debit is the net gain 
of Fox for the year, and after this account is closed, we carry this 
amount of |2,123.57 to the credit side of the J. Fox account. Then 
to find his present worth, proceed as explained under the head of 
"Proprietor's Account" and illustrated by Plate GO and 61. 

132 



HOW TO KEEP FARM ACCOUNTS. 



/7^, 


^ 


^/ a/ ^^-g^<^^^r^UyPry 




<^^ 






/f<;v 












— ' 


7P^ 


^ 


^ ^O^^^i^^c.-c^:^^t<>^. 


^f 


^a¥3 


S^ 






















^ 








"^ 




















^ 














^ 














^ 


/> 












^^ __ 


^ 


^o^ 


^ 





AT THE END OF THE YEAR. 

220. At the end of the year, when your Ledger is in bal- 
ance, and you want to close it to ascertain what you have made oi 
lost, proceed as follows: 

L^rst. — Take an inventory of all Live-stock, Products, Imple- 
ments, Feed, and Real Estate you have on hand at that time. 

Second. — Close all accounts in the Ledger upon which losses 
or gains have been made, as instructed under each. 

Third. — Having carried all accounts upon which losses or 
gains were made into the Loss and Gain account, we close thai 
account as instructed. (Refer to Loss and Gain Account.) 

221. It is well to remember, in this connection, that when 
we close the Ledger at the end of the year, nothing is left in it 
but those acounts showing either a Resource or a Liability, and 
that nothing must be carried to the Loss and Gain account but 
those accounts upon which we have lost or gained. To help you 
decide what are Losses or Gains and what are Resources or Lia- 
bilities, bear in mind that if the debit side of an account is the 
larger it is always either a Resource or a Loss. That when the 
credit side of an account is the larger it is always either a Liability 
or a Gain. As the Resources and Liabilities are not carried to the 
Loss and Gain account, we must pass them by and do nothing with 
them. But if the debit side be the greater, and a loss, then balance 
the account and carry the loss to the debit side of the Loss and 

Gain account. If the credit side of any account be the larger, and 

133 



HOW ro KEEP FARM ACCOUNTS. 



a gain, balance the account and carry the amount of the gain to 
the credit side of the Loss and Gain account. 

When the Ledger is closed at the end of the year, there must 
be no open accounts in it, except those which show a Resource or 
a Liability, and this is also true when the Ledger is opened. But 
before the Ledger can be closed, an inventory must be taken, and 
the one taken by Fox, March 31, 1902, to illustrate the principles 
of farm, accounting, as shown in the example given herein fol- 
lows. Note that the totals of the Production, Feed and Im,ple- 
ments on hand are credited to each, as shown on Plates 68, 73 and 
75. Full instructions follow each account as to what you are to 
do after the inventory has been taken and credited to each of the 
accounts affected. 



134 



HOW TO KEEP FARM ACCOUNTS. 



222. 

31, 1902. 



INVENTOEY OF CLOYERMEAD FARM, MARCH 



PRODUCTION. 

Bay Team Jack and Jim $ i6o oo 

Bay Alare Queen 75 00 

Black ]\Iare Bess 60 00 

Two Colts at $15.00 30 00 

Chestnut Mare 175 00 

Two Cows at $35.00 70 00 

One Calf 5 00 

15 Poland China Sows at $12. 180 00 

I Berkshire Boar 35 00 

98 Shropshire Ewes at $5.00. 490 00 

I Ram 45 00 

I Ram 35 00 

I Ram 30 00 

807 bu. Corn at 60c 484 20 

40 bu. Potatoes at soc 20 00 

15 tons Clover Hay at $6.00. . go 00 

30 bu. Seed Corn at $1.00... 30 00 



$2014 20 



FEED. 

120 bu. Oats at 38c. . . ; $ 45 60 

3^2 ton Middlings at $24.00... 12 00 

^ ton Bran at $21.00 15 75 

V2 bbl. Salt at $1.50 75 



$ 74 10 



IMPLEMENTS. 

One Wagon $ 60 00 

One Farmers' Handy Wagon 39 00 

One Surrey 120 00 

One Buggy 30 oo 

One Spring Tooth Harrow.. 14 00 

One Adjustable Harrow .... 12 00 

One Roller 19 00 

Two Plows at $15.00 30 00 

One Cultivator 40 00 

One Weeder 12 00 

One Corn Planter 27 00 

One Grain Drill 75 00 

One Mower 40 00 

Amount up $ 568 00 



Brought up $ 568 00 

One Cahoon Seeder 3 00 

One Tedder 22 00 

One Corn Sheller 5 00 

One Hay Rake 20 00 

One Hay and Stock Rack... 12 00 
Two Sets Heavy Harness at 

$36.00 72 00 

One Set Light Harness 2000 

Also Axes, Forks, Log Chains, 
Three Horse Eveners, 
Wheelbarows and other 
Miscellaneous tools about 
the place 10 00 

$ 722 00 
Less 30% discount for the 
"wear and tear" of six 
years' use 219 60 

$ 512 40 

One Binder $ 100 00 

One Corn Harvester 100 00 

$ 200 00 
Less 5% for one year's depre- 
ciation 10 00 

$ 190 00 



One Chicago Sheep Shearing 

'Machine $ i5 00 

One Bob Sled 15 00 

Brought down 51240 

Brought down 190 00 

$ 732 40 



RECAPITULATION. 

Production $2014 20 

Feed 74 10 

Implements $ 73^ 40 

$2820 70 



135 



HOW TO KBBP FARM ACCOUNTS. 



THOE YEARLY STATEMENT. 

223. We keep an account with our farmstead, so that we 
can tell our actual financial condition at least once a year. After 
the Ledger is closed, to get the facts before us in a nutshell, we 
make an annual statement. To keep an account for a number of 
years, and compare the last with those that precede it, is a great 
aid to successful farming, because it shows us what branch of our 
management needs more care and attention. The facts we are 
able to glean from, the statement made up at the end of the year 
as to our progress, more than pays us for the labor required to 
keep the Ledger, as it must be kept, to get accurate results. To 
present these benefits more fully we give the statement as Fox 
would make it from his Ledger, illustrated in the preceding pages. 
The statement follows: 

ANNUAL STATEMENT OF CLOVERMEAD FARM, 
MARCH 31, 1902. 

RESOURCES. LIABILITIES. 



CB 


Cash 


$ 4259 


65 


Bills Payable 






$ 4800 


00 


62 


Clovermead 


1290000 


79 


E. Wise 






106 


40 


68 


Prod'uction 


2014 


20 


61 


J. Fox, Present 


W 


Drth 


12703 


60 


72 


Feed 


74 


10 














74 


Implements 


732 


40 














88 


First Nat'l. Bank 


1846 


71 


















$17610 


00 










$17610 


00 



LOSSES. 



GAINS. 



mm :•' 












90 Expense 


$ 408 


39 


91 Production 


$4043 


50 


90 Feed 


334 


bi 








90 Implements 


36 


00 








90 Labor 


95« 


25 








90 Interest 


115 


80 








90 Taxes and Insurance 


65 


28 








90 J. Fox, Net Gain 


2123 


57 








$4043 50 


$4043 


SO 

_ 



RESOURCES AND LIABILITIES. 

224. Of course, you understand, if you have studied the in- 
structions, there are no open accounts in the Ledger at the end 

136 



HOW TO KEEP FARM ACCOUNTS. 



of the year, after the books are closed, except those showing a 
Resource or a Liability. To make up the annual statement: 

(1) Under Resources enter the amount on hand as shown by 
txxe Cash Book at the close of the last day of the year. When Fox 
balanced his cash, March 31st (Plate 53), he had |42.59 on hand. 
This is a Resource, and is the first item entered under that head in 
the statement. 

(2) Taking the Ledger (Plate 62), we find ''Clovermead" $12,- 
900.00. This also is a Resource, because anything is a resource 
of value belonging to us; and by value, we mean cash, or some- 
thing we could realize the cash for if necessary. And Clovermead 
Farm, as it is today, would fetch this amount; it's worth that 
much, hence, a resource. 

(3) The next open account is Bills Payable. These are notes 
we owe, and as everything left standing on the credit side of the 
Ledger is either a Liability or a Gain, we must decide which of the 
two it is. This is eas}^ for we know it isn't a gain, because we 
owe it; therefore, it's a Liability, and so entered on the statement. 

(4) The next account Production (Plate 68), is a Resource. 
The inventory taken today (March 31st), at market price for the 
Stock, Corn, Potatoes and Clover Hay Fox has on hand is |2,- 
014.20. Tliat is the cash value we could realize for it if sold. 

(5) Feed is next (Plate 72). This is also a Resource, for the 
same reason that the items in the Production account are. Con- 
sequently, we enter the amount we have on hand, $74.10. 

(6) Implements follow Feed, and are also a Resource. In- 
ventory shows $732.40 as their value today, and they, too, are 
entered. 

(7) On Plate 79 we find Wise has $106.40 due him. A Lia- 
bility is something we owe. We owe Wise this balance of $106.40 
for wages he left stand during the previous year, so that amount 
goes under Liabilities. 

(8) The next account showing a Resource is the First Na- 
tional Bank. All cash we have, whether on hand or in the bank, 
is a resource, and the balance Fox has to his credit, $1,846.71, 
should be so entered in this statement. 

(9) This takes all the open accounts in the Ledger except one 
— the Proprietor's account — J. Fox. After all the accounts show- 

137 



HOIV TO KEEP FARM ACCOUNTS. 



ing the Losses and Gains were closed into the "Loss and Gain" 
account, and the net gain of Fox credited to his account, his ac- 
count was balanced and closed, and his Present Worth (Plate 61) 
of 112,703.60 is what the business of the Clovermead Farmstead 
is owing hhn at this time, therefore, it is a Liability of the busi- 
ness, and by footing both the Eesources and Liabilities we find 
they equal each other. The boak^ are in balance, and a glance 
at this simple statement, or the statement taken from any Ledger, 
at the end of the year, will show the owner of the business what 
cash he has on hand and in bank, who is owing him, either by Bills 
Receivable or open account, and the amount of grain, live-stock, 
implements, feed, or anything else he may have of value belong- 
ing to him. It also shows him what he owes, and to whom; and 
his actual and absolute net worth. Further, the Losses and Gains 
taken from the "Loss and Gain" account (Plates 90 and 91) will 
show him the total General Expense, the amount of cash paid out 
for Feed, the percentage of depreciation, charged to Loss and 
Gain, on his Farm Implements, what amount he paid for Labor, 
how much his Interest amounted to, and the Taxes and Insurance 
for the year. The above are entered under ''Losses," because they 
are non-productive accounts — nothing can be realized on them 
in cash. But under "Gains" we have Production, |4,043.50; and 
this amount represents everything having a cash value that left 
the farm during the entire year — the total sales. Now, |1,013.50 
being the total proceeds of the sales, that amount, less the sum 
total of the "Losses," will be the net gain of the Proprietor — Fox. 
The whole cost of conducting this farm for the year, including 
general "Expense',' "Feed," "Labor," "Interest," "Taxes" and "In- 
surance," and the depreciation of "Implements," was |1,919.93. By 
deducting this from the "Gains" (total sales), we have |2,123.57, 
or, the net gain of Fox for the year. 

The annual statement, then, is the final summing up of the 
year's business on the farmstead, and is a most valuable guide to 
every thinking farmer. 

225. And now, if we want to know what percentage of net 
gain Fox made on his investment, add two ciphers to his net 
gain, as shown by the "Loss and Gain" account, and divide it by 
the net amount of his investment. Thus: 21235700—1021631 
equals a percentage of 20.72. 

138 



Part Seven 



NUBS OF NOTES 

ON 
Business Paper, Interest Tables, 

Rules Useful When Taking the Farm Inventory, 
etc., etc. 



HOW TO KEEP FARM ACCOUNTS. 



BUSINESS PAPER. 

226. If you receive a check or draft made payable to the 
order of the party sending it to you, and he has not endorsed it, 
it is worthless as far as you are concerned. Return it to the 
sender for endorsement. 

237. Should you have endorsed it before noticing the send- 
er's failure to endorse, erase your name by drawing lines through 
it with a pen. 

228. If you discount notes at your bank, which have en- 
dorsers, do not waive protest, as the security may be released. 

229. When buying drafts always have them made payable 
to your cHwn order, and then endorse them over to the person you 
wish to pay. , 

230. All checks should be made payable "To order." They 
cannot then be transferred without endorsement, and constitute 
in themselves the best receipt you can hold for money paid. This 
is one of the many reasons why you should have a bank account. 

231. Nowadays all checks are printed to read "Pay to the 
order of." If you want currency, simply write "Cash" after "Pay 
to the order of." This is, in effect, the same as making it payable 
to bearer. 

232. If a discrepancy exists between the amount as written 
in the body of a check, draft or note, and amount in figures in the 
margia, the former is held to be the intended amount; but banks 

233. No particular form is necessary for a note, but it must 
contain an order to pay or promise to pay. 

234. The cancelled note you receive should never be 
destroyed — tear the signature through the middle and destroy the 
torn off piece. It isn't of any value then to anybody but yourself, 
and there may come a time when you will need it as a voucher. 

235. INDORSING CHECKS.— If you wish to make a draft 
or check payable to another, write on the back, about three inches 

143 



HO]V TO KEEP FARM ACCOUNTS. 



from the upper, or left-hand end, "Pay to order of," and the name 
of the party to whom von wish to send or liive it. and then voiir 
own siiiuatnre, just as it appears on the face. 

236. STOPPING PAYMENT OP CHECKS.— If von desire 
to stop the payment of a check that you have given, notify your 
bank at once — lose no time — and give the bank full particulars. 
You cannot stop payment of a check that has been "Certified." 

237. NOTES ENDORSED OVER TO YOU.— If you receive 
a note made payable to another and endorsed over to you, be care- 
ful to notice whether any payments have been indorsed on it — 
a note is only worth its face less the payments made on it. 

238. FOR:iIS OF BUSINESS PAPER.— The forms of paper 
used in the ordinary course of business follow. The general 
farmer doesn't have a great variety of bu>iiness paper to handle-, 
yet the following may be useful for reference. 

239. RECEIPT TO APPLY ON ACCOUNT.— 



$200.75 Hudson. Ohio. July 12. 1900. 

Received of ^^ . H. Brown 

Two Hundred & 75-100 Dollars, 

to apply on account. 

W. I. CHAMBERLAIN. 



240. RECEIPT IN FULL OF ACCOUNT.— 



$S^.20 Chicago. III.. March 3. 1901. 

Received of John Johnson 

Thirty-Six & 20-:oo Dollars 

in full of account to date. 

LANDERS PUBLISHING CO. 



241. RECEIPT FOR PAYMENT ON NOTE.— 



$100.00 Standish. Mich. Jan. 9. 1901. 

Received of E. H. Mohr 

One Hundred...-. DQllars. 

as a partial payment on his note under date Oct. 13, 1899, 
for Five Hundred Dollars, payable to me. 

JOHN LIVINGSTON. 



144 



HOJV TO KUBP FARM ACCOUNTS. 



242. DUE BILL.— 



$12.00 



Columbus Grove, Ohio, June 8, 1900. 
I^"e Ed Wise...., 

Twelve r> n ' 

Dollars, 

on demand. 

JOHN FOX. 



243. ORDINARY PROMISSORY NOTE. 



$500.00 Newark, Ohio, May 16, 1901. 

Sixty days after date, I promise to pay Frederick 

V/eise or order Five Hundred Dollars, 

value received, with interest. Payable at First National 



Bank. 



JOHN FOX. 



244. JOINT NOTE.— 



$^°°°° Osborn, Ohio, August 10, 1900. 

Ninety days after date, we promise to pay John M. 

Jamison or order Two Hundred Dollars, 

value received, with interest, at First National Bank. 

HENRY BERGH. 

EDWARD TAYLOR. 



245. BANK NOTE.— 



$300.00 



Lima, Ohio, April 10, 1900. 
Ninety days after date I promise to pay W. E. 
Harding, cashier, or order. .. .Three Hundred. .. .Dollars, 
value received, with interest. Payable at Farmers' Na- 
tional Bank. 

JACOB ASH. 
Endorsed on back by Frederick Williams, A. H. Wells. 



TO MEASURE CORN. 

246. ON COB.— Two heaping bushels of corn on the cob will 
make one struck bushel of shelled corn. Some claim that one and 
one-half bushels of ear will make one bushel of shelled corn. 
Much will depend upon the kind of corn, shape of the ear, size 
of the cob, etc. 

145 



HOW TO KBBP FARM ACCOUNTS. 



247. IN CEIB. — To measure corn in a crib, multiply the 
length of the crib in inches by the width in inches, and that by 
the height of the corn in the crib in inches, and divide the product 
by 2,748, and the quotient will be the num^ber of heaped bushels 
of ears. If the crib flares at the sides, measure the width at the 
top and also at he bottom, add the two sums together, and divide 
by 2, which will give the mean width. 

248. CORN SHRINKAGE.— Corn will shrink from the 
time it is husked in the autumn, in well-protected cribs, from 20 
to 30 per cent, by spring. That is, 100 bushels Avill shrink to 70 
or 80, according to how dry it was when cribbed. 

GRAIN IN BINS. 

249. TO MEASURE GRAIN IN BINS.— Multiply the 
length of the bin in inches by the width in inches, and that by 
the height in inches, and divide by 2,150 for struck bushels, and by 
2,748 for heaped bushels. The quotient will be the number of 
bushels contained in the bin. 

250. Agricultural reports estimate that new wheat shrinks 
6 per cent, in six months. Ilence, 94 cents in August is equal to 
fl.OO in February. 

MEASUREMENT OF HAY. 

251. The only exact method of measuring hay is to weigh it, 
but the rules given below will be found sufficiently exact when 
taking the inventory. 

252. TO FIND THE NUMBER OF TONS OF MEADOW 
HAY IN WINDROWS.— Multiply together the length, breadth 
and height, in yards, and divide the product by 25. The quotient 
will be the number of tons in the windrow. 

253. TO FIND THE NUMBER OF TONS OF HAY IN A 
MOW. — Multiply together the length, height and width, in yards, 
and divide by 15, if the hay be well packed. If the mow be shal- 
low, and the hay recently placed therein, divide b^^ 18, and by any 
number from 15 to 18, according as the hay is well packed. 

254. TO FIND THE NUMBER OF TONS OF HAY IN 
SQUARE OR LONG STACKS.— Multiply the length of the base 
in yards by half the width in yards, and that by half the height 
in yards, and divide by 15. 

146 



HOW TO KBBP FARM ACCOUNTS. 



255. TO FIND THE NUMBER OF TONS OF HAY IN A 
LOAD. — Multiply together the length, width and height, in yards, 
and divide the product by 20. 

256. TO MEASURE HAY IN STACK.— The area of the 
base multiplied by the the perpendicular height to eaves, plus one- 
third the perpendicular height from eaves to crest, will give the 
number of cubic feet in a stack the sides of wdiich are per-pendic- 
ular to a greater or less height. If the stack slopes uniformly 
from base to crest, then multiply the area of the base by one-third 
of the perpendicular height. To find the area of the base, divide 
the distance around it by 3.141G, take one-half of the result and 
square it, then multiply by 3.141G. The number of cubic feet 
necessary for a ton of good', well-settled hay is about 450. 

257. ANOTHER METHOD.— Measure the stack for length, 
width and the "over." To get the "over," throw a tape-line over 
the stack at an average place from ground to ground, drawing 
it tightly. Multiply the width by the "over," and divide the result 
by 4; multiply the result of the division by the length for approxi- 
mate cubical contents of the stack. To reduce to tons for hay 
that has stood in stack for less than twenty days, divide cubical 
contests by 512; for more than twenty days and less than sixty 
days, divide cubical contests by 422; for more than sixty days, 
divide by 380. 

258. TO FIND THE VALUE OF PRODUCTS SOLD BY 
THE TON AT A GIVEN PRICE.— To ascertain the value of a 
given number of pounds of hay, straw or other commodity sold at 
a given price per ton, multiply the number of pounds by one-half 
the price per ton, and point off three figures from the right. The 
result will be the price of the article. 

MEASUREMENT OF WOOD. 

259. A cord of wood contains 128 cubic feet. To ascertain 
how many cords there are in a pile of wood, multiply the length 
by the height, and that by the width, and divde the product by 128. 



147 



HOPV TO KBBP FARM ACCOUNTS. 



260. SIX PER CENT. INTEREST TABLE.— 



Time. | 


$1 


$2 


$3 


$4 


$5 


$6 


$10 


$20 1 


$50 


$100 


$1000 


Day 


s 1 


























1 


2 


17 




2 























1 


2 


3 


38 


.< 


3 






















1 


3 


5 


50 


>( 


4 






















1 


3 


7 


67 


« 


5 





















2 


4 


8 


83 


« 


6 




















2 


5 


10 


1 00 


(( 


7 




















2 


6 


12 


1 17 


« 


8 



















3 


7 


13 


1 33 


>( 


9 

















2 


3 


8 


15 


1 50 


« 


10 








1 








2 


3 


8 


17 


1 67 


<( 


15 







1 






2 


3 


5 


13 


25 


2 50 


<. 


20 







1 




2 


2 


3 


7 


17 


33 


3 33 


<. 


25 







1 


2 


2 


2 


4 


8 


21 


42 


4 17 


(1 


30 


1 




2 


2 


3 


3 


5 


10 


25 


50 


5 00 


« 


33 


1 




2 


2 


3 


3 


6 


11 


28 


55 


5 50 


u 


63 


1 


2 


3 


4 


5 


6 


11 


21 


53 


1 05 


10 50 


« 


Q3 


2 


3 


5 


6 


8 


9 


16 


31 


78 


1 55 


15 50 


Months 1 


1 


1 


o 


2 


3 


3 


5 


10 


25 


50 


5 00 




2 


1 


2 


'i 


4 


5 


6 


10 


20 


50 


1 00 


10 00 




3 


2 


3 


5 


6 


8 


9 


15 


30 


75 


1 50 


15 00 




4 


2 


4 


6 


8 


10 


12 


20 


40 


1 00 


2 00 


20 00 




5 


3 


5 


8 


10 


13 


15 


25 


50 


1 25 


2 50 


25 00 




6 


3 


6 


9 


12 


15 


18 


30 


60 


1 50 


3 00 


30 00 




7 


4 


7 


11 


14 


18 


21 


35 


70 


1 75 


3 50 


35 00 




8 


4 


8 


12 


18 


20 


24 


40 


80 


2 00 


4 00 


40 00 




9 


5 


9 


14 


18 


23 


27 


45 


90 


2 25 


4 50 


45 00 




10 


5 


10 


15 


20 


25 


30 


50 


1 00 


2 50 


5 00 


50 00 




11 


6 


11 


17 


22 


28 


33 


55 


1 10 


2 75 


5 50 


55 00 




12 


6 


12 


18 


24 


30 


36 


60 


1 20 


3 00 


6 00 


60 00 



261. INTEREST TABLE.— 

The follov/ing will be found convenient in the absence of ex- 
tended interest tables: 

To find the interest on a given sum, for any number of days, 
at any rate of interest. 

At 5 per cent., multiply the principal by the number of days and divide by 72. 



At 6 

At 7 " 

At 8 •• 

At 10 " 

At 12 •' 



60. 
52. 
45. 
40. 
35. 



148 



GESTATION TABLE. 

262. A table showing the period of gestation, or, when colts 
calves, lambs and pigs may be expected, the date of service beinj 
known, =• 



I'ime of 
Service 



January 1 

" 2 

" 11 

" 16 

" 21 

" 26 

" 31 

February 5 

" 10 

" 15 

" 2'0 

" 25 

March 2 

" 7 

" 12 

" 17 

" 22 

" 27 

April 1 

" 6 

" 11 

" 16 

" 21 

" 26 

May 1 

" 6 

11 

" 16 

" 21 

■' 26 

" 31 

June 5 

" 10 

" 15 

" 20 

" 25 

" 30 

July 5 

" 10 

" 15 

" 20 

" 25 

" 30 

A.ugust 4 



.14 
.19 
.24 



September 



October 3 



November 



December 



....13 
....18 
....23 

28 

2 

.... 7 
...12 
...17 
...23 
...27 
... 2 
... 7 
...12 
...17 
...82 
...27 
...31 



Mares 
340 Days 



Cows 
283 Days 



December 



11 

" 16 

" 21 

" 26 

" 31 

January 5 

" 10 

" 15 

" 20 

" 25 

" 30 

February 4 



March 



.14 
.19 
.24 
. 1 



April 



May 



June 



July 



..11 
..16 
.21 
.26 
.31 
. 5 
.10 
.15 
.20 
.25 
.30 
. 5 
.10 
.15 
.20 
.25 
.30 
. 4 
. 9 
.14 
.19 
.24 
.29 
. 9 
.14 
.19 
.24 
.29 



.\ugust 3 

" 8 

" 13 

18 

" 28 

" 28 

September .... 2 

" 7 

" 12 

" 17 

" 22 

^" 27 

October 2 

" 7 

" 12 

" 17 

" 22 

" 27 

November .... i 

" 6 

" 11 

" 16 

21 

" 26 

December .... i 
" 5 



October 10 

" 15 

" 20 

" 25 

" 30 

November .... 4 

" 9 

" 14 

" 19 

" 34 

" 29 

December 4 

" 9 

" 14 

" 19 

" 34 

" 29 

January 3 

" 8 

" 13 

" 18 

" 23 

" 28 

February 2 

" 7 

" 12 

" 17 

" 23 

" 27 

March 4 



April 



May 



.14 
.19 
.34 
.29 
. 3 
. 8 
.13 
.18 
.23 
.28 
. 3 



June 



July 



13 

18 

23 

28 

2 

7 

12 

17 

23 

27 

2 

'■ 7 

„ 13 

17 

„ 32 

27 

August 1 

" 6 

„ 11 

.. 16 

„ 21 

„ 26 

September .... 5 

" 10 

„ 16 

„ 30 

„ 35 

October 6 

" 9 



!Ewes 
150 Days 



Sows 
112 Days 



May 
June 



July 



.30 
. 4 

. 9 
.14 
.19 
.24 



4 

" 9 

" 14 

" 19 

" 34 

" 29 

August 3 



13 

" 18 

" 23 

" 28 

September 2 

" 7 

" 12 

" 17 

" 33 

" 27 

October 3 

" 7 

12 

" 17 

" 23 

" 27 

November 1 

" 6 

" 11 

16 

21 

^" 36 

December 1 

" 6 

„ 11 

16 

31 

36 

T ' 31 

January 5 

" 10 

15 

20 

25 

^^ 30 

February 4 

" 9 

„ 14 

„ 19 

24 

March 1 

'' 6 

11 

" 16 

,. 31 

,^ 26 

. . 31 

April 5 

" 10 

„ 15 

„ 20 

,, 25 

,^ 30 

May 5 

" 10 

„ 15 

„ 20 

.. 25 

39 



April 
May 



June 



.22 

.27 

2 

! 7 

.13 
.17 
.23 
.27 
. 1 



July 



11 

IG 

21 

26 

1 

" 6 

" 11 

" 16 

" 21 

" 26 

," 31 

August 5 

" 10 

" 15 

" 20 

" 25 

^ " 30 

September .... 4 



14 

" 19 

" 34 

" 29 

October 4 



14 

" 19 

" 24 

" 29 

November 3 

" 8 

" 13 

" 18 

" 23 

28 

December 3 






....13 


" 


18 


" 


....23 


** 


28 


January . . 


3 


** 


. . T 


" 12 




....17 


" 


....22 


" 


37 


February . . 


.... 1 





... 6 


" 


...U 


" 


...16 


" 


...21 


' 


...26 


March 


... 3 


*' 

** 


... 8 




1 •? 


" 


...23 





...28 


April 


... 2 





... 7 




...13 




...17 





...21 



The first column gives date of service. On the same line 
under the different columns headed Mares, Cows, etc is t?^en the 
date the progeny may be expected from such service. 



263. WEIGHTS AND MEASURES. — 

Avoirdupois or Commercial Weight. 

16 drams =1 ounce 

16 ounces =1 pound 

25 pounds =1 quarter 

4 quarters or 100 pounds =1 hundrcdvvciglit 

20 hundredweight or 2000 lbs = 1 ton 

Troy or Jewelers' Weight. 

24 grains =1 pennyweight 

20 pennyweights =1 ounce 

12 ounces =1 potmd 

Apothecaries' Weight. 
20 grains =1 scruple 

3 scruples =1 dram 

8 drams =1 ounce 

12 ounces =1 pound 

Dry Measure. 

2 pints =1 quart 

8 quarts =1 peck 

4 pecks =1 bushel 

8 bushels (480 pounds) =1 quarter 

36 bushels =1 chaldron 

Liquid Measure. 

4 gills =1 pint 

2 pints ;• =1 quart 

4 quarts =1 gallon 

31^2 gallons =1 barrel 

2 barrels, or 63 gallons =1 hogshead 

Apothecaries' Fluid Measure. 

60 minums =1 fluid dram 

8 fluid drams =1 fluia ounce 

16 fluid ounces =1 pint 

8 pints' =1 gallon 

Line or Linear Measure 
12 inches =^1 foot 

3 feet ^=1 yard 

SVz yards or 16'/^ feet =1 rod or pole 

40 rods =1 furlong 

8 furlongs =1 mile (statute mile) 

3 miles —1 league 

Surveyors' or Chain Measure. 

7.92 inches =1 link 

25 links =1 rod or pole 

4 rods, or 66 feet =1 chain 

80 chains =1 mile 

Square or Surface Measure 
144 square inches =1 square foot 

9 square feet — 1 square yard 

30^ square yards =1 square rod or perch 

160 square rods =1 acre 

640 acres =1 square mile or section 

Surveyor's Square Measure 

625 square links ^1 square rod or pole 

16 poles =1 square chain 

10 square chain =:1 acre 

640 acres =1 square mile or section 

36 square miles (6 miles square) ^1 township 

Solid or Cubic Measure 

1728 cubic inches =1 cubic foot 

27 cubic feet =1 cubic yard 

16 cubic feet =1 cord foot 

8 cord feet or 128 cubic feet =1 cord of wood 

24^ cubic feet 1=1 perch 



LIBRARY OF CONGRESS 



0DD577flT7bb 




/- 



